All Resources
In this article:
minus iconplus icon
Share the Blog

Navigating the SEC's New Cybersecurity and Incident Disclosure Rules

January 11, 2024
4
 Min Read
Compliance

Recently, the U.S Securities and Exchange Commission (SEC) had adopted stringent cybersecurity and incident disclosure rules, placing a heightened emphasis on the imperative need for robust incident detection, analysis, and reporting processes.

Following these new rules, public companies are finding themselves under a microscope, obligated to promptly disclose any cybersecurity incident deemed material. This disclosure mandates a detailed account of the incident's nature, scope, and timing within a stringent 4-business-day window. In essence, companies are now required to offer swift detection, thorough analysis, and the delivery of a comprehensive report on the potential impact of a data breach for shareholders and investors.

SEC's Decisive Actions in 2023: A Wake-Up Call for CISOs

The SEC's resolute stance on cybersecurity became clear with two major actions in the latter half of 2023. In July, the SEC implemented rules, effective December 18, mandating the disclosure of "material" threat/breach incidents within a four-day window. Simultaneously, annual reporting on cybersecurity risk management, strategy, and governance became a new norm. These actions underscore the SEC's commitment to getting tough on cybersecurity, prompting Chief Information Security Officers (CISOs) and their teams to broaden their focus to the boardroom. The evolving threat landscape now demands a business-centric approach, aligning cybersecurity concerns with overarching organizational strategies.

Adding weight to the SEC's commitment, in October, SolarWinds Corporation and its CISO, Timothy G. Brown was charged with fraud and internal control failures relating to allegedly known cybersecurity risks and vulnerabilities. This marked a historic moment, as it was the first time the SEC brought cybersecurity enforcement claims against an individual. SolarWinds' case, where the company disclosed only "generic and hypothetical risks" while facing specific security issues, serves as a stark reminder of the SEC's intolerance towards non-disclosure and intentional fraud in the cybersecurity domain. It's evident that the SEC's cybersecurity mandates are reshaping compliance norms.

This blog will delve into the intricacies of these rules, their implications, and how organizations, led by their CISOs, can proactively meet the SEC's expectations.

Implications for Compliance Professionals

Striking the Balance: Over-Reporting vs. Under-Reporting

Compliance professionals must navigate the fine line between over-reporting and under-reporting, a task akin to a high-stakes tightrope walk.

Over-Reporting: The consequences of hyper-vigilance can't be underestimated. Reporting every incident, regardless of its material impact, might instigate unwarranted panic in the market. This overreaction could lead to a domino effect, causing a downturn in stock prices and inflicting reputational damage.

Under-Reporting: On the flip side, failing to report within the prescribed time frame has its own set of perils. Regulatory penalties loom large, and the erosion of investor trust becomes an imminent risk. The SEC's strict adherence to disclosure timelines emphasizes the need for precision and timeliness in reporting.

Market Perception

Shareholder & Investor Trust: Balancing reporting accuracy is crucial for maintaining shareholder and investor trust. Over-reporting may breed skepticism and lead to potential divestment, while delayed reporting can erode trust and raise questions about the organization's cybersecurity commitment.

Regulatory Compliance: The SEC mandates timely and accurate reporting. Failure to comply incurs penalties, impacting both finances and the organization's regulatory standing. Regulatory actions, combined with market fallout, can significantly affect the long-term reputation of the organization.

Strategies for Success

The Day Before - Minimize the Impact of the Data Breach

To minimize the impact of a data breach, the first crucial step is knowing the locations of your sensitive data. Identifying and mapping this data within your infrastructure, along with proper classification, lays the foundation for effective protection and risk mitigation.

Data Security Posture Management (DSPM) solutions provide advanced tools and processes to actively monitor, analyze, and fortify the security posture of your sensitive data, ensuring robust protection in the face of evolving threats.

  • Discovers any piece of data you have and classifies the different data types in your organization.
  • Automatically detects the risks of your sensitive data (including data movement) and remediation. 
  • Aligns your data protection practices with security regulations and best practices. Incorporates compliance measures for handling personally identifiable information (PII), protected health information (PHI), credentials, and other sensitive data.

From encryption to access controls, adopting a comprehensive security approach safeguards your organization against potential breaches. It’s crucial to conduct a thorough risk assessment to measure vulnerabilities and potential threats to your data. Understanding the risks allows for targeted and proactive risk management strategies.

Security posture score, which includes the data and issues overview, highlighting the top data classes at risk.
An example of a security posture score, which includes the data and issues overview, highlighting the top data classes at risk.

The Day After: Maximizing the Pace to Handle the Impact (reputation, money, recovery, etc)

In the aftermath of a breach, having a “Data Catalog” with data sensitivity ranking helps with understanding the materiality of the breach and quick resolution and reporting within the 4-day window.

Swift incident response is also paramount; and this can be accomplished by establishing a rapid plan for mitigating the impact on reputation, finances, and overall recovery. This is where the data catalog comes into play again, by helping you understand which data was extracted, facilitating quick and accurate resolution. The next step for the ‘day after’ is actively managing your organization's reputation post-incident through transparent communication and decisive action, which contributes to trust and credibility rebuilding.

A complete catalog, showing the data stores, the account, the sensitivity and category of the data, as well as the data context.
An example of a complete catalog, showing the data stores, the account, the sensitivity and category of the data, as well as the data context.

Finally, always conduct a comprehensive post-incident analysis for valuable insights, and enhance future security measures through a continuous improvement cycle. Building resilience into your cybersecurity framework by proactively adapting and fortifying defenses, best positions your organization to withstand future challenges. Adhering to these strategies enables organizations to navigate the cybersecurity landscape effectively, minimizing risks, ensuring compliance, and enhancing their ability to respond swiftly to potential incidents.

Empowering Compliance in the Face of SEC Regulations with Sentra’s DSPM

Sentra’s DSPM solution both discovers and classifies sensitive data, and aligns seamlessly with SEC's cybersecurity and incident disclosure rules. The real-time monitoring swiftly identifies potential breaches, offering a critical head start within the 4-day disclosure window.

Efficient impact analysis enables compliance professionals to gauge materiality and consequences for shareholders during reporting. Sentra's DSPM streamlines incident analysis processes, adapting to each organization's needs. Having a "Data Catalog" aids in understanding breach materiality for quick resolution and reporting, while detailed reports ensure SEC compliance.

By integrating Sentra, organizations meet regulatory demands, fortify data security, and navigate evolving compliance requirements. As the SEC shapes the cybersecurity landscape, Sentra guides towards a future where proactive incident management is a strategic imperative.

To learn more, schedule a demo with one of our experts.

<blogcta-big>

Meni is an experienced product manager and the former founder of Pixibots (A mobile applications studio). In the past 15 years, he gained expertise in various industries such as: e-commerce, cloud management, dev-tools, mobile games, and more. He is passionate about delivering high quality technical products, that are intuitive and easy to use.

Subscribe

Latest Blog Posts

Ward Balcerzak
Ward Balcerzak
May 15, 2025
3
Min Read
Data Security

Why I Joined Sentra: A Data Defender’s Journey

Why I Joined Sentra: A Data Defender’s Journey

After nearly two decades immersed in cybersecurity, spanning Fortune 500 enterprises, defense contractors, manufacturing giants, consulting, and the vendor ecosystem, I’ve seen firsthand how elusive true data security remains. I've built and led data security programs from scratch in some of the world’s most demanding environments. But when I met the team from Sentra, something clicked in a way that’s rare in this industry.

Let me tell you why I joined Sentra and why I’m more excited than ever about the future of data security.

From Visibility to Vulnerability

In every role I've held, one challenge has consistently stood out: understanding data.
Not just securing it but truly knowing what data we have, where it lives, how it moves, how it's used, and who touches it. This sounds basic, yet it’s one of the least addressed problems in security.

Now, we layer on the proliferation of cloud environments and SaaS sprawl (without mentioning the increasing proliferation of AI agents). The traditional approaches simply don’t cut it. Most organizations either ignore cloud data discovery altogether or lean on point solutions that can’t scale, lack depth, or require endless manual tuning and triage.

That’s exactly where Sentra shines.

Why Sentra?

When I first engaged with Sentra, what struck me was that this wasn’t another vendor trying to slap a new UI on an old problem. Sentra understands the problem deeply and is solving it holistically across all environments. They’re not just keeping up; they’re setting the pace.

The AI-powered data classification engine at the heart of Sentra’s platform is, quite frankly, the best I’ve seen in the market. It automates what previously required a small army of analysts and does so with an accuracy and scale that’s unmatched. It's not just smart, it’s operationally scalable.

But technology alone wasn’t what sold me. It was the people.
The Sentra founders are visionaries who live and breathe this space. They’re not building in a vacuum, they’re listening to customers, responding to real-world friction, and delivering solutions that security teams will actually adopt. That’s rare. That’s powerful.

And finally, there’s the culture. Sentra radiates innovation, agility, and relentless focus on impact. Every person here knows the importance of their role and how it aligns with our mission. That energy is infectious and it’s exactly where I want to be.

Two Decades. One Mission: Secure the Data.

At Sentra, I’m bringing the scars, stories, and successes from almost 20 years “in the trenches”:

  • Deep experience building and maturing data security programs within highly regulated, high-stakes environments

  • A commitment to the full people-process-technology stack, because securing data isn’t just about tools

  • A background stitching together integrated solutions across silos and toolsets

  • A unique perspective shaped by my time as a practitioner, leader, consultant, and vendor

This blend helps me speak the language of security teams, empathize with their challenges, and design strategies that actually work.

Looking Ahead

Joining Sentra isn’t just the next step in my career; it’s a chance to help lead the next chapter of data security. We’re not here to incrementally improve what exists. We’re here to rethink it. Redefine it. Solve it.

If you’re passionate about protecting what matters most, your data. I’d love to connect.

This is more than a job; it’s a mission. And I couldn’t be prouder to be part of it.

<blogcta-big>

Read More
David Stuart
David Stuart
May 5, 2025
4
Min Read
Compliance

What the HIPAA Compliance Updates Mean for Your Security

What the HIPAA Compliance Updates Mean for Your Security

The Health Insurance Portability and Accountability Act (HIPAA) has long been a cornerstone of safeguarding sensitive health information in the U.S., particularly electronic protected health information (ePHI). As healthcare organizations continue to face growing cybersecurity challenges, ensuring the protection of ePHI has never been more critical. 

In response, for the first time in two decades, the U.S. Department of Health and Human Services (HHS) has proposed significant amendments to the HIPAA Security Rule, aimed at strengthening cybersecurity measures across the healthcare sector. These proposed changes are designed to address emerging threats and ensure that healthcare organizations have robust systems in place to protect patient data from unauthorized access and potential breaches. This blog presents the major changes that are coming soon and how you can prepare for them.

Instead of considering compliance as a one-time effort, with Sentra you can monitor your compliance status at any given moment, streamline reporting, and remediate compliance violations instantly.

How Sentra Can Help You Stay Compliant

Sentra’s data security platform equips healthcare organizations with the necessary tools to stay compliant with the new HIPAA Security Rule amendments. By providing continuous monitoring of ePHI data locations and assessing associated risks, Sentra helps organizations maintain full visibility and control over sensitive data.

Key Benefits of Using Sentra for HIPAA Compliance:

  • Automated Data Discovery & Classification: Instantly locate and classify ePHI across cloud and on-prem environments.
  • Real-time Risk Assessment: Continuously assess vulnerabilities and flag security gaps related to HIPAA requirements.
  • Access Control & Encryption Monitoring: Ensure compliance with mandatory MFA, encryption policies, and access termination requirements.
  • Smart Compliance Alerts: Sentra doesn’t just detect generic cloud misconfigurations. Instead, it pinpoints security issues affecting sensitive data, helping teams focus on what truly matters.

Without a solution such as Sentra, organizations waste valuable time manually searching for and classifying sensitive data, diverting key employees from higher-priority security tasks. With Sentra, security teams gain an ongoing, real-time dashboard that ensures efficient compliance and faster risk mitigation.

What You Need to Know About the Proposed HIPAA Security Rule Updates

The latest proposed updates to the HIPAA Security Rule represent some of the most significant changes in years. These updates aim to modernize data protection practices and ensure healthcare organizations are better equipped to handle today’s security challenges. Below are the key highlights compliance and security teams should focus on:

Mandatory Implementation Specifications
All implementation specifications under the HIPAA Security Rule will become mandatory. Covered entities and business associates must now fully comply with all safeguards—no more "addressable" exceptions.

Stricter Encryption Requirements
Encryption of electronic protected health information (ePHI) will be required both at rest and in transit. Organizations must ensure encryption is in place across all systems handling sensitive data.

Required Multifactor Authentication (MFA)
MFA will become mandatory to protect access to ePHI. This added security layer significantly reduces the risk of unauthorized access and credential compromise.

Network Segmentation for Threat Containment
Organizations must implement network segmentation to isolate sensitive systems and limit the spread of cyber threats in the event of a breach.

Timely Termination of Access
Access to ePHI must be revoked within 24 hours when an employee leaves or changes roles. This reduces the risk of insider threats and unauthorized access.

Comprehensive Documentation Requirements
Healthcare organizations must maintain detailed, up-to-date documentation of all security policies, procedures, risk assessments, and incident response plans.

Asset Inventories and Network Mapping
Annual updates to technology asset inventories and network maps will be required to ensure accurate tracking of where and how ePHI is stored and transmitted.

Enhanced Risk Analysis
Organizations must conduct regular, thorough risk assessments to identify vulnerabilities and assess threats across all systems that interact with ePHI.

Stronger Incident Response Plans
Entities must be able to restore lost systems and data within 72 hours after a cyber incident. Regular testing and refinement of incident response protocols will be essential.

Annual Compliance Audits
Healthcare organizations will be required to conduct annual audits of their HIPAA Security Rule compliance, covering all technical and administrative safeguards.

Mandatory Technical Controls
Technical safeguards like anti-malware tools, firewalls, and port restrictions must be in place and regularly reviewed to protect systems from evolving threats.

What’s Next?

The proposed changes to the HIPAA Security Rule are currently in the Notice of Proposed Rulemaking (NPRM) stage, with a 60-day public comment period that opened on January 6, 2025. During this period, stakeholders can provide feedback on the amendments, which may influence the final rule. Organizations should actively monitor the comment period, engage in the feedback process, and stay informed on any potential adjustments before the rule is finalized.

Steps Organizations Should Take Now:

  • Review the proposed changes and understand how they impact your current security posture.
  • Engage in the public comment process to share concerns or recommendations.
  • Start assessing security gaps to align with HIPAA’s evolving compliance requirements.

Conclusion

The new HIPAA compliance amendments represent a major shift in how healthcare organizations must protect electronic Protected Health Information (ePHI). The introduction of enhanced encryption standards, mandatory multi-factor authentication (MFA), and stricter access control measures means organizations must act swiftly to maintain compliance and reduce cybersecurity risks.

Compliance is not just about meeting regulations, it is about efficiency. Organizations relying on manual processes to locate and secure sensitive data waste valuable time and resources, making compliance efforts less effective.

With Sentra, healthcare organizations gain a powerful, automated data security solution that:

  • Eliminates manual data discovery by providing a real-time, continuous inventory of sensitive data.
  • Prioritizes relevant data security risks instead of overwhelming teams with unnecessary alerts.
  • Ensures compliance readiness by automating key processes like access control monitoring and encryption verification.

Now is the time for healthcare organizations to take proactive steps toward compliance. Stay informed, participate in the public comment process, and start implementing security enhancements today.

To learn how Sentra can help your organization achieve HIPAA compliance efficiently, request a demo today and take control of your sensitive data.

<blogcta-big>

Read More
Yoav Regev
Yoav Regev
April 23, 2025
3
Min Read
Data Security

Your AI Is Only as Secure as Your Data: Celebrating a $100M Milestone

Your AI Is Only as Secure as Your Data: Celebrating a $100M Milestone

Over the past year, we’ve seen an incredible surge in enterprise AI adoption. Companies across industries are integrating AI agents and generative AI into their operations to move faster, work smarter, and unlock innovation. But behind every AI breakthrough lies a foundational truth: AI is only as secure as the data behind it.

At Sentra, securing that data has always been our mission, not just to prevent breaches and data leaks, but to empower prosperity and innovation with confidence and control.

Data Security: The Heartbeat of Your Organization

As organizations push forward with AI, massive volumes of data, often sensitive, regulated, or business-critical are being used to train models or power AI agents. Too often, this happens without full visibility or governance. 


The explosion of the data security market reflects how critical this challenge has become. At Sentra, we’ve long believed that a Data Security Platform (DSP) must be cloud-native, scalable, and adaptable to real-world enterprise environments. We’ve been proud to lead the way, and our continued growth, especially among Fortune 500 customers, is a testament to the urgency and relevance of our approach.

Scaling for What's Next

With the announcement of our $50 million Series B funding round, bringing our total funding to over $100 million, we’re scaling Sentra to meet the moment. We're counting on strong customer momentum and more than tripling revenue year-over-year, and we’re using this investment to grow our team, strengthen our platform, and continue defining what modern data security looks like.

We’ve always said security shouldn’t slow innovation - it should fuel it. And that’s exactly what we’re enabling.

It's All About the People


At the end of the day, it’s people who build it, scale it, and believe in it. I want to extend a heartfelt thank you to our investors, customers, and, most importantly, our team. It’s all about you! Your belief in Sentra and your relentless execution make everything possible. We couldn’t make it without each and every one of you.

We’re not just building a product, we’re setting the gold standard for data security, because securing your data is the heartbeat of your organization!

Innovation without security isn’t progress. Let’s shape a future where both go together!

<blogcta-big>

Read More
decorative ball
Expert Data Security Insights Straight to Your Inbox
What Should I Do Now:
1

Get the latest GigaOm DSPM Radar report - see why Sentra was named a Leader and Fast Mover in data security. Download now and stay ahead on securing sensitive data.

2

Sign up for a demo and learn how Sentra’s data security platform can uncover hidden risks, simplify compliance, and safeguard your sensitive data.

3

Follow us on LinkedIn, X (Twitter), and YouTube for actionable expert insights on how to strengthen your data security, build a successful DSPM program, and more!