Cybersecurity as a Board Priority
In the wake of headline-making cyber breaches and class action lawsuits for data losses, companies face growing scrutiny and evolving legal and regulatory standards. The SEC recently issued a risk alert summarizing observations from examinations of registered broker-dealers and investment advisers conducted under its cybersecurity examination initiative announced earlier this year. Given the increasing frequency of cybersecurity incidents and the growing impact of those incidents on business, directors’ oversight activities should include understanding the adequacy of a company’s cybersecurity measures and related liability protections and incident response plans. The issues are complicated, and there are no simple solutions. But there are actions that boards and management can take now to begin to quantify and mitigate cybersecurity risks. Read the SEC risk alert.