PLANSPONSOR - November - December 2023 - 10

UPFRONT
How to Prepare for a Breach
THE QUESTION of how plan sponsors can
most effectively respond to and communicate
news of a data leak to their participants
has been a central topic for years. But a
new Securities and Exchange Commission
rule outlines how quickly public companies
must disclose material cybersecurity
events and is prompting more discussion
of best practices.
For Stacy Hughes, chief information
security officer at Voya Financial, the time
to craft a response to a potential threat is
long before any incident occurs. The main
thrust of the new SEC rule focuses sponsors
on determining what is considered
material for their particular organization,
since the rule stipulates disclosing such
events with new Form 8-K within four business
days. Hughes further emphasizes, in
the company's annual report, the importance
of new disclosures that fully describe
a sponsor's cybersecurity program.
Proactively
creating
a
detailed
approach and assigning people to monitor
and respond to any potential threat is
key to being prepared should a breach
occur, Hughes says. She advises drafting
a responsibility assignment, or RACI
[responsible, accountable, communicated,
informed], matrix that clearly outlines
roles and responsibilities for everyone in
an organization in event of an attack.
Testing your plan as a tabletop exercise
on a regular basis-and including all
stakeholders-is important, she says. It is
also useful, she says, for teams to role play
common risks-e.g., a scenario in which a
business email has been compromised or a
ransomware attack happens.
Adding Reporting Requirements
One practice some employers are adopting
is to build rapid reporting requirements
into contracts.
10 PLANSPONSOR.COM November - December 2023 Art by Anja Sušanj
" Sponsor and plan fiduciary expectations
are changing, and that's just a
natural progression, " says Kelly Lazzara,
senior compliance counsel in Gallagher's
financial and retirement services practice.
" ... given the plan sponsor's fiduciary
obligation with respect to understanding
the breach or the incident and responding
to it, there's a lot of pressure for incidentreporting
times to come down. "
Michael Kreps, a principal in Groom
Law Group, Chartered, also sees the need
for sponsors to consider both SEC rules
and Department of Labor guidance, along
with requirements that can vary by state.
" It's a bit of a thicket because,
depending on the type of the breach and
the type of the data involved and the location,
you have to be cognizant of all the
state privacy laws as well, " Kreps says.
Accordingly, he sees best practices as
a multistep approach: detecting the breach;

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PLANSPONSOR - November - December 2023

Table of Contents for the Digital Edition of PLANSPONSOR - November - December 2023

INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
A Cost-Conscious Approach
Exploring the Choices
2023 PLANSPONSOR Service Stars
PLANSPONSOR Roadmap
A Thorny Issue
Take Under Advisement
A Repair Guide for Errors
FIDUCIARY FORUM Annual Notice Season
NSIDE ANGLE An Influential Opinion
PLAN PROFILE A Focus on Wellness
PLANSPONSOR - November - December 2023 - Cover1
PLANSPONSOR - November - December 2023 - INSIGHTS
PLANSPONSOR - November - December 2023 - 1
PLANSPONSOR - November - December 2023 - 2
PLANSPONSOR - November - December 2023 - 3
PLANSPONSOR - November - December 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - November - December 2023 - 5
PLANSPONSOR - November - December 2023 - RULES & REGULATIONS
PLANSPONSOR - November - December 2023 - 7
PLANSPONSOR - November - December 2023 - 8
PLANSPONSOR - November - December 2023 - 9
PLANSPONSOR - November - December 2023 - UPFRONT
PLANSPONSOR - November - December 2023 - 11
PLANSPONSOR - November - December 2023 - 12
PLANSPONSOR - November - December 2023 - 13
PLANSPONSOR - November - December 2023 - 14
PLANSPONSOR - November - December 2023 - 15
PLANSPONSOR - November - December 2023 - A Cost-Conscious Approach
PLANSPONSOR - November - December 2023 - 17
PLANSPONSOR - November - December 2023 - 18
PLANSPONSOR - November - December 2023 - 19
PLANSPONSOR - November - December 2023 - Exploring the Choices
PLANSPONSOR - November - December 2023 - 21
PLANSPONSOR - November - December 2023 - 22
PLANSPONSOR - November - December 2023 - 23
PLANSPONSOR - November - December 2023 - 2023 PLANSPONSOR Service Stars
PLANSPONSOR - November - December 2023 - 25
PLANSPONSOR - November - December 2023 - 26
PLANSPONSOR - November - December 2023 - 27
PLANSPONSOR - November - December 2023 - PLANSPONSOR Roadmap
PLANSPONSOR - November - December 2023 - 29
PLANSPONSOR - November - December 2023 - 30
PLANSPONSOR - November - December 2023 - 31
PLANSPONSOR - November - December 2023 - A Thorny Issue
PLANSPONSOR - November - December 2023 - 33
PLANSPONSOR - November - December 2023 - Take Under Advisement
PLANSPONSOR - November - December 2023 - 35
PLANSPONSOR - November - December 2023 - A Repair Guide for Errors
PLANSPONSOR - November - December 2023 - 37
PLANSPONSOR - November - December 2023 - FIDUCIARY FORUM Annual Notice Season
PLANSPONSOR - November - December 2023 - NSIDE ANGLE An Influential Opinion
PLANSPONSOR - November - December 2023 - PLAN PROFILE A Focus on Wellness
PLANSPONSOR - November - December 2023 - Cover3
PLANSPONSOR - November - December 2023 - Cover4
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