Post by account_disabled on Jan 12, 2024 21:23:09 GMT -8
More than ever, the demands posed by cybersecurity issues conflict with the need for innovation and productivity. Cybersecurity risks include not only the risk of network data breaches, but also the risk of entire enterprises being compromised due to business activities that rely on open digital connectivity and accessibility. Therefore, learning how to deal with cybersecurity risks is critical for businesses and must therefore be addressed strategically from the top. Cybersecurity management can no longer be delegated to information technology departments. It needs to be everyone's business including the board's. Cybersecurity Enters the Boardroom.
Cyber breaches have become commonplace, with only the most high-profile incidents making headlines, such as the recent breach at a credit reporting agency that affected an estimated 100 million U.S. consumers. Although most boards are not prepared for this, corporate boards are Email Lists Database still expected to ensure cybersecurity. A 2018 survey from the American Society of Corporate Directors found that 10% of believed cyber-related risks were the most challenging risks they needed to regulate. A company's ability to manage this risk has a profound impact on stock prices, the company's reputation, and the professional reputations of the directors themselves.
For example, following the Target data breach in 2016, in which the personal information of more than 10,000 customers was stolen, a shareholder lawsuit alleged that directors and senior managers failed to discharge their fiduciary duties and failed to maintain adequate controls to ensure the security of data. safety. Although no board members were ultimately found at fault, both the company's CEO and chief information officer resigned. U.S. case law is based on and generally adheres to the business judgment rule, which sets a high bar for plaintiffs to take legal action against board members. Most common law countries have similar protection for directors.
Cyber breaches have become commonplace, with only the most high-profile incidents making headlines, such as the recent breach at a credit reporting agency that affected an estimated 100 million U.S. consumers. Although most boards are not prepared for this, corporate boards are Email Lists Database still expected to ensure cybersecurity. A 2018 survey from the American Society of Corporate Directors found that 10% of believed cyber-related risks were the most challenging risks they needed to regulate. A company's ability to manage this risk has a profound impact on stock prices, the company's reputation, and the professional reputations of the directors themselves.
For example, following the Target data breach in 2016, in which the personal information of more than 10,000 customers was stolen, a shareholder lawsuit alleged that directors and senior managers failed to discharge their fiduciary duties and failed to maintain adequate controls to ensure the security of data. safety. Although no board members were ultimately found at fault, both the company's CEO and chief information officer resigned. U.S. case law is based on and generally adheres to the business judgment rule, which sets a high bar for plaintiffs to take legal action against board members. Most common law countries have similar protection for directors.