As regulators mandate more disclosures around cyber security, companies can leverage this reporting to prove adherence to privacy and breach notification regulations. For Australian firms pursuing M&A or raising capital, detailed reporting will soon be obligatory.
The regulatory push makes sense against the backdrop of escalating cyber threats in Australia. Sophisticated attacks, insider risks and deep digital connectivity have raised the stakes. Potential impacts run into the billions.
In response, agencies like APRA, ASIC and OAIC aim to harden defenses through stricter requirements. Detailed reporting prompts action while providing evidence of compliance.
For example, APRA now requires incident reporting within 72 hours to demonstrate compliance with prudential standards on data protections. Comprehensive monthly reports also showcase control improvements.
ASIC's continuous disclosure laws also necessitate immediate reporting of material breaches to avoid allegations of non-compliance. Lagging disclosure risks steep fines.
Most clearly, OAIC's data breach notification laws require swift and thorough reporting to impacted individuals. Companies must describe the breach, remediation and prevention to comply.
Even voluntary frameworks like the ASD Essential Eight enable compliance demonstrations when adopted. Following the Essential Eight shows adherence to privacy principles through data safeguarding.
For Australian deal teams, the implications are clear: comprehensive reporting is crucial for proving compliant cyber security governance.
Robust reports will cover penetration testing, infrastructure analysis, cyber insurance evaluation, and monitoring for stolen data. Evaluating breach notification procedures will also gain prominence.
Moving forward, deal-makers should invest in reporting capabilities ahead of the curve. Learn to quantify cyber risk, pressure test systems, and draft cogent incident reports. Involve technical experts to avoid blind-spots.
The regulatory spotlight will only grow as technology expands its grip. M&A and capital formation in Australia will hinge on transparent cyber reporting that demonstrates data protection adherence. Savvy deal teams are getting ready today.