Israel Security Authority Requires Companies to Include Cyber Threats in Filings

The Israel Security Authority requires companies to include cyber attacks and potential cyber threats that may affect their performance in their filing to the stock exchange, to shareholders, and to their board of directors. In a legal memo published Sunday, the authority said cyber attacks can threaten the ability of companies to reach milestones and can result in loss of income, damage to intellectual and physical property, legal damages, and legal expenses.

In May, new Israeli privacy protection regulations came into force requiring all companies and non-profit organizations operating in Israel and running or processing a database which contains personal information to report significant security breaches to an Israeli government entity which can also demand that users and customers be informed of the breach and possible ensuing risks.