Call us now:
A great post from the FT, demonstrating the increase in shareholder litigation in holding boards accountable for failures in Corporate Governance Faisal Khan. As Institutional investors reached a settlement with Serco this week over contract overcharging, that led to a drop in share price. The first case ever bought in the UK, as investors seek to hold companies accountable for failures in governance. I especially like the remarks made in the article by Chris Warren-Smith partner at Morgan, Lewis & Bockius ‘Accountability to shareholders is the cornerstone of good corporate governance’.
That brings one to Cybersecurity risk management, well documented as the biggest risk public and private sector organisations face. A risk regulated in the U.S and EU, mandating corporate governance, oversight and assurance by boards. A risk that has affected corporate share price (Capita) and a risk that is poorly managed by UK companies. A risk that recently required the CEO of UnitedHealth to attend a congressional committee to discuss a cyber attack that was described as a threat to nation security and one that demonstrated failures of corporate governance.
One suspect that institutional investors of UK companies, just like their U.S and EU counterparts, will be paying very close attention to cybersecurity risk management reporting, oversight and assurance. To put the issue of shareholder litigation into perspective, $115bn has been paid out since 1996 to settle 2,900 class action cases. Cybersecurity has the potential to significantly affect shareholder value (SEC final cyber rule), one suspects we’re going to see plenty of litigation.
@Thaddeus Dziekanowski Brian D. McCarthy M. Ali F. Khan
Veritas GRC
#cybersecurity #cyberriskmanagement #cyberattack
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