Cyber update: Personal Certification by Corporate executives on the Rise
The likelihood of meaningful federal cybersecurity legislation in 2020 remains suspect. Yet, developments in 2019 show that cybersecurity regulation is headed toward a Sarbanes-Oxley model with or without congressional input. The sarbanes-Oxley act (SOX) had a significant effect on corporate governance in the united states by requiring public companies to strengthen audit committees, perform internal controls tests, and make directors and officers personally liable for the accuracy of financial statements. For SOX certifications, the act requires that an organization’s senior officer personally certify the accuracy of the company’s financial reports. a false certification can implicate personal liability. regulation of cybersecurity is taking a similar approach.
Joshua Mooney and Rick Borden address the 2019 rule changes and the threat of personal liability requirements for a written and comprehensive cybersecurity program in their recent article "Cyber update: Personal Certification by Corporate executives on the Rise."