Corporate governance also means protecting your technology and information

By Vinny Sanchez

Not a day passes without news of a data breach or cyber attack on a company’s operations or a nation’s critical information infrastructure. Indeed, data security and operational risk are the top two concerns of public company directors and general counsel, according to the 2012 Law and the Boardroom Study conducted by FTI Consulting and Corporate Board Member. Disaster recovery, e-discovery and company reputation also rank high among top issues keeping directors and GCs up at night.

Today, company operations and shareholder value depend more than ever on the successful acquisition, implementation and operation of technology. Online interactions with customers have created the expectation that companies will be continuously open for business. Viruses, worms, spoofing and cyber wars cannot stop this expectation, and the consequences of failing to be available online 24/7 harm a company’s reputation and, ultimately, its value.

Even the SEC has weighed in on the materiality of these risks, proffering guidelines as to when public companies should disclose information regarding cyber attacks. The White House and Congress continue debating how they will influence the private sector’s approach to protecting the critical information infrastructure, and an executive order addressing cybersecurity issued in February this year will likely affect almost every company, public or private…

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