FTC Released an Article Corporate Boards: Don’t underestimate your role in data security oversight (April 28, 2021)

Corporate Boards: Don’t Underestimate Your Role in Data Security Oversight 

April 28, 2021

In the article by the Federal Trade Commission (“FTC”), the critical role of corporate boards in overseeing data security is emphasized, particularly in light of the increased remote work during the pandemic, which has heightened security threats. Significant data breaches can lead to financial losses, reputational damage, and legal repercussions for companies, making it imperative for boards to prioritize data security.

Historically, many boards view cybersecurity as solely an IT issue, but it should be recognized as a company-wide concern that requires diverse stakeholder involvement. Establishing dedicated oversight for cybersecurity at the board level and conducting regular security briefings are essential to ensure that directors are well-informed about potential risks and challenges. Additionally, boards must understand that legal compliance alone does not equate to robust security; they need to continually assess whether their measures adequately address unique organizational risks.

Effective incident response plans are also crucial, as quick action during security breaches can mitigate damage. Learning from past breaches—both their own and those of others—can help boards strengthen their security posture and remain vigilant against evolving cyber threats. Overall, this highlights the need for corporate boards to engage actively in data security oversight and foster a culture of security within their organizations.

For more information, see here:  https://www.ftc.gov/news-events/blogs/business-blog/2021/04/corporate-boards-dont-underestimate-your-role-data-security

These materials were obtained directly from the Federal Government public websites and are posted here for your review and reference only.  No Claim to Original U.S. Government Works.  These may not be the most recent versions.  The U.S. Government may have more current information.  We make no guarantees or warranties about the accuracy or completeness of this information or the information linked to.  Please check the linked sources directly.