This is why cyber matters in the board room, as markets react badly to the news from Clorox that the attack reduced its quarterly revenue by 28%.

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This is why cyber matters in the board room, as markets react badly to the news from Clorox that the attack reduced its quarterly revenue by 28%. Its shares hit the lowest point in around 5 years, falling by 8%. Analysts moved to reduce their target prices, Evercore ISI US$120 from US$160 and Raymond James downgraded it to ‘market perform’ from ‘outperform’, BoA cut its price to US$120 from US$145 and Deutsche to US$136 from US$155.

Clorox maybe lucky. It fell short of the SEC cyber ruling. When U.S regulators and markets start to really focus in on cyber compliance, considering pervious reports and mitigation programs. With regulatory oversight that could lead to fines and legal action.

One may consider the SEC ruling an issue. However EU NIS 2 and DORA start in 2024, effecting CNI providers and FIs. Requiring boards to have the appropriate knowledge and experience to oversight and assure cyber risk and report cyber incidents in 24 hours. Boards must have a clear understanding of cybersecurity risk management, legal and fiduciary considerations and the effects of cyber on risk transfer.

Ted Dziekanowski Brian D. McCarthy Bob Dix

#cybersecurity #cyberriskmanagement #cyberregulation #clorox.

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