Governance Issues TM
Volume 2020, No. 1
February 20, 2020
In This Issue
Cyber readiness in a world of increasing risks and costs is addressed in our first article. We then write about recent SEC guidance for disclosing KPIs and other metrics, which is now applicable for public companies and includes an example of data security measures.

Do not procrastinate when it comes to cybersecurity as the risks are real
By Ron Kral, CPA, CMA, CGMA
No topic has likely garnered more attention in boardrooms over the last couple of years than cybersecurity. And rightfully so when the full extent of direct and indirect costs of a data breach are considered. Direct costs include legal fees, forensic experts, public relations, remediation efforts, potential fines and regulatory compliance expenses. However, it is the indirect costs of operational disruption, increased insurance premiums, brand reputational damage, loss of future revenue streams, etc. that can lead to business ruin.
The US Securities and Exchange Commission (SEC) published guidance on disclosure of key performance indicators and metrics in MD&A ( Commission Guidance on Management’s Discussion) on January 30, 2020. Since this Guidance became effective on the publication date, it now applies to all periodic reports filed with the SEC.
Effective disclosure controls need to extend to key performance indicators and other metrics in MD&As
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About Governance Issues TM
Go vernance Issues TM is an electronic newsletter published by Kral Ussery LLC, a public accounting firm delivering advisory services, litigation support and internal audits. The newsletter focuses on our practice areas of SEC compliance, internal controls, IT general controls, risk assessments, IPO readiness, M&A transactions, US GAAP compliance and internal auditing.
Content in this newsletter is for general information purposes only and should not be used as a substitute for professional consultation.
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