Essay on SEC Disclosure Controls: Ensuring Data Disclosure Compliance

The SEC defines the word disclosure controls as measures taken to ensure that data supposed to be revealed by the insurer in all the information it files under the Security Exchange Act of 1934 is: handled and stated within the interval stated in the commissions' forms and guidelines. All employees anticipate submitting to the policy, failure to which may lead to termination or disciplinary actions. Disclosure controls and procedures gather material data for inclusion in forms 6K, 10Q, 8K, and 10K reports. Internal controls that are part of disclosure controls influence the financial statements as long as they are relevant. SEC guidance helps in maintaining comprehensive policies associated with cybersecurity, particularly as incorporated into a firm's disclosure and procedures. Additionally, they also guide the board on how to oversee the management of cybersecurity risk and assist in controlling the risks. Considering the increased reliance on the internet, public companies should notify investors about the danger of cybersecurity poses.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

On January 26, 2017, a case was filed against us in the superior court of the state of California for negligence. The complaint argued that we failed to protect personal information on 2016 Form W-2s for current and former employees. He explained that for violation of Section 17200 et seq. of the California Business and Professionals Code and breach of implied contract. We caused damages such as punitive, actual, and cost to the complaint. In April 2017, another charge was filed against us in the same court regarding the same matter. This time around the argument was that we violated the California Customer Records Act, the California Confidentiality of Medical Information Act, breach of confidentiality, and the California Unfair Competition Law. The second protest seeks constitutional and actual damages, attorneys' fees, and the cost of prosecuting the action.

In July 2017, we agreed with the complaints in each of the above cases. We decided to withdraw charges against us but under certain conditions. The conditions were as follows; we were to pay between 250000 USD and 2500 USD to the affected party in the whole saga. It was as compensation for exposing the data. To us it served as expenses or out of pocket losses associated with data security. Also, we were to give the individuals a one-year extension of the theft protection identity. A part of the agreement involved giving the affected persons who did not have theft protection at the time of the incident a three-year cover. Finally, we were not supposed to oppose the cost enhancement of up to 245000 USD in total. All these terms are subject to court approval if we go astray.

Conclusion

We continue to get inquiries from the regulators regarding several issues. In case we may be found guilty now, or in the future, it may cause severe penalties or even scraping away our permit to give insurance cover citizens of the involved state. Automatically this will result in low income, or even the business will shut down. Furthermore, if we do not have a health insurance permit in a state, we will not get commissions for our services in the region. As a result, we will not sell health covers in those states hence destroying our image. We did not record liabilities in our Condensed Consolidated Balance Sheet at December 31, 2016, and June 20, 2017.