After a significant data breach, what is the first step to comply with the SEC?

The first step to comply with the SEC after a significant data breach is to assess the depth of the breach and notify investors. This action is crucial because it aligns with the SEC's guidelines regarding material events that can affect a company's financial health and investor interests.

When a data breach occurs, determining the extent of the breach—such as the type of data compromised, the number of individuals affected, and the potential impact on the company's operations and reputation—allows the organization to accurately inform stakeholders. Investors have a right to be updated about material risks that could influence their investment decisions. Promptly notifying them helps ensure transparency and builds trust, which is vital for maintaining market integrity.

In contrast, evaluating areas still at risk for hackers or researching credit monitoring services may be important subsequent actions but do not address the immediate obligation to inform investors of a breach that could significantly impact the company. Waiting to notify investors is contrary to SEC regulations, as timely communication is essential in situations involving potential material risks. Therefore, assessing the breach's impact and notifying investors is the most immediate and compliant course of action following a data breach.