Sarcouncil Journal of Engineering and Computer Sciences

Abstract: The rapid digitalization of the financial reporting systems has exposed the U.S. public companies to cybersecurity threats that could impair financial information integrity, the reliability of disclosure, and investor confidence. This paper examines how cybersecurity risk disclosure practices and regulatory technology adoption affect transparency and accountability in US capital markets. The study reviewed existing literature, regulatory guidance, and corporate disclosures in the filings of U.S. public companies, 2020-2026, using a qualitative analytical approach. The results show that the disclosure of cyber risk in corporate reporting is becoming visible in recent years, with the advent of new laws, such as new mandatory cybersecurity disclosure regulations through Regulation S-K. It is also indicated that cybersecurity incidents continue to affect investor perceptions, though the market reactions to breach announcements have been declining over time. Continuous internal control risks are also a major issue to the reliability of the reporting, and the use of Regulatory Technology tools has enhanced monitoring, compliance procedures, and accuracy in reporting. Nevertheless, the growing reliance on automated compliance mechanisms also presents a governance issue to boards and audit committees, charged with the responsibility of monitoring the complex technology-based reporting systems.