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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 effectively minimize the impact of a data breach, the first and most critical step is understanding where your sensitive data resides. By identifying, mapping, and properly classifying this data within your environment, you establish the foundation for strong protection and informed risk mitigation.

Data Security Posture Management (DSPM) solutions strengthen this foundation by providing continuous visibility, analysis, and reinforcement of your data security posture. With DSPM, organizations can confidently safeguard sensitive information in the face of evolving threats by enabling the ability to:

  • 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.

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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.

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Ward Balcerzak
Ward Balcerzak
December 17, 2025
3
Min Read

How CISOs Will Evaluate DSPM in 2026: 13 New Buying Criteria for Security Leaders

How CISOs Will Evaluate DSPM in 2026: 13 New Buying Criteria for Security Leaders

Data Security Posture Management (DSPM) has quickly become part of mainstream security, gaining ground on older solutions and newer categories like XDR and SSE. Beneath the hype, most security leaders share the same frustration: too many products promise results but simply can't deliver in the messy, large-scale settings that enterprises actually have. The DSPM market is expected to jump from $1.86B in 2024 to $22.5B by 2033, giving buyers more choice - and greater pressure - to demand what really sets a solution apart for the coming years.

Instead of letting vendors dictate the RFP, what if CISOs led the process themselves? Fast-forward to 2026 and the checklist a CISO uses to evaluate DSPM solutions barely resembles the checklists of the past. Here are the 12 criteria everyone should insist on - criteria most vendors would rather you ignore, but industry leaders like Sentra are happy to highlight.

Why Legacy DSPM Evaluation Fails Modern CISOs

Traditional DSPM/DCAP evaluations were all about ticking off feature boxes: Can it scan S3 buckets? Show file types? But most CISO I meet point to poor data visibility as their biggest vulnerability. It's already obvious that today’s fragmented, agent-heavy tools aren’t cutting it.

So, what’s changed for 2026? Massive data volumes, new unstructured formats like chat logs or AI training sets, and rapid cloud adoption mean security leaders now need a different class of protection.

The right platform:

  • Works without agents, everywhere you operate
  • Focuses on bringing real, risk-based context - not just adding more alerts
  • Automates compliance and fixes identity/data governance gaps
  • Manages both structured and unstructured data across the whole organization

Old evaluation checklists don’t come close. It’s time to update yours.

The 13 DSPM Buying Criteria Vendors Hope You Don’t Ask

Here’s what should be at the heart of every modern assessment, especially for 2026:

  1. Is the platform truly agentless, everywhere? Agent-based designs slow you down and block coverage. The best solutions set up in minutes, with absolutely no agents - across SaaS, IaaS, or on-premises and will always discover any unknown and shadow data
  1. Does it operate fully in-environment? Your data needs to stay in your cloud or region - not copied elsewhere for analysis. In-environment processing guards privacy, simplifies compliance, and matches global regulations (Cloud Security Alliance).
  1. Can it accurately classify unstructured data (>98% accuracy)? Most tools stumble outside of databases. Insist on AI-powered classification that understands language, context, and sensitivity. This covers everything from PDF files to Zoom recordings to LLM training data.
  1. How does it handle petabyte-scale scanning and will it  break the bank? Legacy options get expensive as data grows. You need tools that can scan quickly and stay cost-effective across multi-cloud and hybrid environments at massive scale.
  1. Does it unify data and identity governance? Very few platforms support both human and machine identities - especially for service accounts or access across clouds. Only end-to-end coverage breaks down barriers between IT, business, and security.
  1. Can it surface business-contextualized risk insights? You need more than technical vulnerability. Leading platforms map sensitive data by its business importance and risk, making it easier to prioritize and take action.
  1. Is deployment frictionless and multi-cloud native? DSPM should work natively in AWS, Azure, GCP, and SaaS, no complicated integrations required. Insist on fast, simple onboarding.
  1. Does it offer full remediation workflow automation? It’s not enough to raise the alarm. You want exposures fixed automatically, at scale, without manual effort.

  2. Does this fit within my Data Security Ecosystem? Choose only platforms that integrate and enrich your current data governance stack so every tool operates from the same source of truth without adding operational overhead. 
  1. Are compliance and security controls bridged in a unified dashboard? No more switching between tools. Choose platforms where compliance and risk data are combined into a single view for GRC and SecOps.
  1. Does it support business-driven data discovery (e.g., by project, region, or owner)? You need dynamic views tied to business needs, helping cloud initiatives move faster without adding risk, so security can become a business enabler.
  1. What’s the track record on customer outcomes at scale? Actual results in complex, high-volume settings matter more than demo promises. Look for real stories from large organizations.
  2. How is pricing structured for future growth? Beware of pricing that seems low until your data doubles. Look for clear, usage-based models so expansion won’t bring hidden costs.

Agentless, In-Environment Power: Why It’s the New Gold Standard

Agentless, in-environment architecture removes hassles with endpoint installs, connectors, and worries about where your data goes. Gartner has highlighted that this approach reduces regulatory headaches and enables fast onboarding. As organizations keep adding new cloud and hybrid systems, only these platforms can truly scale for global teams and strict requirements.

Sentra’s platform keeps all processing inside your environment. There’s no need to export your data; offering peace of mind for privacy, sovereignty, and speed. With regulations increasing everywhere, this approach isn’t just helpful; it’s essential.

Classification Accuracy and Petabyte-Scale Efficiency: The Must-Haves for 2026

Unstructured data is growing fast, and workloads are now more diverse than ever. The difference between basic scanning and real, AI-driven classification is often the difference between protecting your company or ending up on the breach list. Leading platforms, including Sentra, deliver over 95% classification accuracy by using large language models and in-house methods across both structured and unstructured data.

Why is speed and scale so important? Old-school solutions were built with smaller data volumes in mind. Today, DSPM platforms must quickly and affordably identify and secure data in vast environments. Sentra’s scanning is both fast and affordable, keeping up as your data grows. To learn more about these challenges read: Reducing Cloud Data Attack Risk.

Don’t Settle: Redefining Best-in-Class DSPM Buying Criteria for 2026

Many vendors are still only comfortable offering the basics, but the demands facing CISOs today are anything but basic. Combining identity and data governance, multi-cloud support that works out of the box, and risk insights mapped to real business needs - these are the essential elements for protecting today’s and tomorrow’s data. If a solution doesn’t check all 12 boxes, you’re already limiting your security program before you start.

Need a side-by-side comparison for your next decision?  Request a personalized demo to see exactly how Sentra meets every requirement.

Conclusion

With AI further accelerating data growth, security teams can’t afford to settle for legacy features or generic checklists. By insisting on meaningful criteria - true agentless design, in-environment processing, precise AI-driven classification, scalable affordability, and business-first integration - CISOs set a higher standard for both their own organizations and the wider industry.

Sentra is ready to help you raise the bar. Contact us for a data risk assessment, or to discuss how to ensure your next buying decision leads to better protection, less risk, and a stronger position for the future.

Continue the Conversation

If you want to go deeper into how CISOs are rethinking data security, I explore these topics regularly on Guardians of the Data, a podcast focused on real-world data protection challenges, evolving DSPM strategies, and candid conversations with security leaders.

Watch or listen to Guardians of the Data for practical insights on securing data in an AI-driven, multi-cloud world.

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Nikki Ralston
Nikki Ralston
Romi Minin
Romi Minin
December 16, 2025
3
Min Read

Sentra Is One of the Hottest Cybersecurity Startups

Sentra Is One of the Hottest Cybersecurity Startups

We knew we were on a hot streak, and now it’s official.

Sentra has been named one of CRN’s 10 Hottest Cybersecurity Startups of 2025. This recognition is a direct reflection of our commitment to redefining data security for the cloud and AI era, and of the growing trust forward-thinking enterprises are placing in our unique approach.

This milestone is more than just an award. It shows our relentless drive to protect modern data systems and gives us a chance to thank our customers, partners, and the Sentra team whose creativity and determination keep pushing us ahead.

The Market Forces Fueling Sentra’s Momentum

Cybersecurity is undergoing major changes. With 94% of organizations worldwide now relying on cloud technologies, the rapid growth of cloud-based data and the rise of AI agents have made security both more urgent and more complicated. These shifts are creating demands for platforms that combine unified data security posture management (DSPM) with fast data detection and response (DDR).

Industry data highlights this trend: over 73% of enterprise security operations centers are now using AI for real-time threat detection, leading to a 41% drop in breach containment time. The global cybersecurity market is growing rapidly, estimated to reach $227.6 billion in 2025, fueled by the need to break down barriers between data discovery, classification, and incident response 2025 cybersecurity market insights. In 2025, organizations will spend about 10% more on cyber defenses, which will only increase the demand for new solutions.

Why Recognition by CRN Matters and What It Means

Landing a place on CRN’s 10 Hottest Cybersecurity Startups of 2025 is more than publicity for Sentra. It signals we truly meet the moment. Our rise isn’t just about new features; it’s about helping security teams tackle the growing risks posed by AI and cloud data head-on. This recognition follows our mention as a CRN 2024 Stellar Startup, a sign of steady innovation and mounting interest from analysts and enterprises alike.

Being on CRN’s list means customers, partners, and investors value Sentra’s straightforward, agentless data protection that helps organizations work faster and with more certainty.

Innovation Where It Matters: Sentra’s Edge in Data and AI Security

Sentra stands out for its practical approach to solving urgent security problems, including:

  • Agentless, multi-cloud coverage: Sentra identifies and classifies sensitive data and AI agents across cloud, SaaS, and on-premises environments without any agents or hidden gaps.
  • Integrated DSPM + DDR: We go further than monitoring posture by automatically investigating incidents and responding, so security teams can act quickly on why DSPM+DDR matters.
  • AI-driven advancements: Features like domain-specific AI Classifiers for Unstructure advanced AI classification leveraging SLMs, Data Security for AI Agents and Microsoft M365 Copilot help customers stay in control as they adopt new technologies Sentra’s AI-powered innovation.

With new attack surfaces popping up all the time, from prompt injection to autonomous agent drift, Sentra’s architecture is built to handle the world of AI.

A Platform Approach That Outpaces the Competition

There are plenty of startups aiming to tackle AI, cloud, and data security challenges. Companies like 7AI, Reco, Exaforce, and Noma Security have been in the news for their funding rounds and targeted solutions. Still, very few offer the kind of unified coverage that sets Sentra apart.

Most competitors stick to either monitoring SaaS agents or reducing SOC alerts. Sentra does more by providing both agentless multi-cloud DSPM and built-in DDR. This gives organizations visibility, context, and the power to act in one platform. With features like Data Security for AI Agents, Sentra helps enterprises go beyond managing alerts by automating meaningful steps to defend sensitive data everywhere.

Thanks to Our Community and What’s Next

This honor belongs first and foremost to our community: customers breaking new ground in data security, partners building solutions alongside us, and a team with a clear goal to lead the industry.

If you haven’t tried Sentra yet, now’s a great time to see what we can do for your cloud and AI data security program. Find out why we’re at the forefront: schedule a personalized demo or read CRN’s full 2025 list for more insight.

Conclusion

Being named one of CRN’s hottest cybersecurity startups isn’t just a milestone. It pushes us forward toward our vision - data security that truly enables innovation. The market is changing fast, but Sentra’s focus on meaningful security results hasn't wavered.

Thank you to our customers, partners, investors, and team for your ongoing trust and teamwork. As AI and cloud technology shape the future, Sentra is ready to help organizations move confidently, securely, and quickly.

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Meni Besso
Meni Besso
December 15, 2025
3
Min Read

AI Governance Starts With Data Governance: Securing the Training Data and Agents Fuelling GenAI

AI Governance Starts With Data Governance: Securing the Training Data and Agents Fuelling GenAI

Generative AI isn’t just transforming products and processes - it’s expanding the entire enterprise risk surface. As C-suite executives and security leaders rush to unlock GenAI’s competitive advantages, a hard truth is clear: effective AI governance depends on solid, end-to-end data governance.

Sensitive data is increasingly used for model training and autonomous agents. If organizations fail to discover, classify, and secure these resources early, they risk privacy breaches, regulatory violations, and reputational damage. To make GenAI safe, compliant, and trustworthy from the start, data governance for generative AI needs to be a top boardroom priority.

Why Data Governance is the Cornerstone of GenAI Trustworthiness and Safety

The opportunities and risks of generative AI depend not only on algorithms, but also on the quality, security, and history of the underlying data. AWS reports that 39% of Chief Data Officers see data cleaning, integration, and storage as the main barriers to GenAI adoption, and 49% of enterprises make data quality improvement a core focus for successful AI projects (AWS Enterprise Strategy - Data Governance). Without strong data governance, sensitive information can end up in training sets, leading to unintentional leaks or model behaviors that break privacy and compliance.

Regulatory requirements, such as the Generative AI Copyright Disclosure Act, are evolving fast, raising the pressure to document data lineage and make sure unauthorized or non-compliant datasets stay out. In the world of GenAI, governance goes far beyond compliance checklists. It’s essential for building AI that is safe, auditable, and trusted by both regulators and customers.

New Attack Surfaces: Risks From Unsecured Data and Shadow AI Agents

GenAI adoption increases risk. Today, 79% of organizations have already piloted or deployed agentic AI, with many using LLM-powered agents to automate key workflows (Wikipedia - Agentic AI). But if these agents, sometimes functioning as "shadow AI" outside official oversight, access sensitive or unclassified data, the fallout can be severe.

In 2024, over 30% of AI data breaches involve insider threats or accidental disclosure, according to Quinnox Data Governance for AI. Autonomous agents can mistakenly reveal trade secrets, financial records, or customer data, damaging brand trust. The risk multiplies rapidly if sensitive data isn’t properly governed before flowing into GenAI tools. To stop these new threats, organizations need up-to-the-minute insight and control over both data and the agents using it.

Frameworks and Best Practices for Data Governance in GenAI

Leading organizations now follow data governance frameworks that match changing regulations and GenAI's technical complexity. Standards like NIST AI Risk Management Framework (AI RMF) and ISO/IEC 42001:2023 are setting the benchmarks for building auditable, resilient AI programs (Data and AI Governance - Frameworks & Best Practices).

Some of the most effective practices:

  • Managing metadata and tracking full data lineage
  • Using data access policies based on role and context
  • Automating compliance with new AI laws
  • Monitoring data integrity and checking for bias

A strong data governance program for generative AI focuses on ongoing data discovery, classification, and policy enforcement - before data or agents meet any AI models. This approach helps lower risk and gives GenAI efforts a solid base of trust.

Sentra’s Approach: Proactive Pre-Integration Discovery and Continuous Enforcement

Many tools only secure data after it’s already being used with GenAI applications. This reactive strategy leaves openings for risk. Sentra takes a different path, letting organizations discover, classify, and protect sensitive data sources before they interact with language models or agentic AI.

By using agentless, API-based discovery and classification across multi-cloud and SaaS environments, Sentra delivers immediate visibility and context-aware risk scoring for all enterprise data assets. With automated policies, businesses can mask, encrypt, or restrict data access depending on sensitivity, business requirements, or audit needs. Live Continuous monitoring tracks which AI agents are accessing data, making granular controls and fast intervention possible. These processes help stop shadow AI, keep unauthorized data out of LLM training, and maintain compliance as rules and business needs shift.

Guardrails for Responsible AI Growth Across the Enterprise

The future of GenAI depends on how well businesses can innovate while keeping security and compliance intact. As AI regulations become stricter and adoption speeds up, Sentra’s ability to provide ongoing, automated discovery and enforcement at scale is critical. Further reading: AI Automation & Data Security: What You Need To Know.

With Sentra, organizations can:

  • Stop unapproved or unchecked data from being used in model training
  • Identify shadow AI agents or risky automated actions as they happen
  • Support audits with complete data classification
  • Meet NIST, ISO, and new global standards with ease

Sentra gives CISOs, CDOs, and executives a proactive, scalable way to adopt GenAI safely, protecting the business before any model training even begins.

AI Governance Starts with Data Governance

AI governance for generative AI starts, and is won or lost, at the data layer. If organizations don’t find, classify, and secure sensitive data first, every other security measure remains reactive and ineffective. As generative AI, agent automation, and regulatory demands rise, a unified data governance strategy isn’t just good practice, it’s an urgent priority. Sentra gives security and business teams real control, making sure GenAI is secure, compliant, and trusted.

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