NACD Directorship looks at cybersecurity oversight risk among S&P 500 companies. Some of the findings of their review of board leadership on digital practices include: Citrix, FedEx, General Motors, Hasbro, and Walmart make top grades for digital competency. …In short, boardroom leadership on digital governance makes a difference-a big one. …Director competencies are the starting…
For the first time in 30 years, the SEC has updated its risk factor disclosure guidance under Regulation S-K (Reg S-K). One of the foundational updates replaces the requirement for issuers to disclose the “most significant” risk factors with “material” risk factors. That’s a significant shift in the SEC’s principles-based approach to risk factor disclosure that has…
Corporate boards forced to move meetings online during the coronavirus pandemic are trying to guard against cyberattacks with secure communication platforms and instructions for members on notetaking and eavesdropping. Boards are gravitating to platforms such as Cisco Systems Inc.’s Webex, LogMeIn Inc.’s GoToMeeting, and Microsoft Corp.’s Teams, according to directors and consultants. Nasdaq Inc. has…
The largest companies are gradually telling investors more about the pains they’re taking to protect their own information as well as customers’ privacy. Yet some industries are reporting those efforts better than others, according to new studies. A growing number of firms have fallen into step with last year’s guidance from the Securities and Exchange Commission to…
Wells Fargo and Equifax each suffered embarrassing corporate disasters in the recent past. Yet the companies are at much different points in their recoveries, say legal, governance and management observers. That makes them interesting studies in how boards oversee — or fail to oversee — crises and turnarounds. The three-year cleanup of Wells Fargo’s management and compliance problems…
Carlyle Group LP, Overstock.com Inc. and AmTrust Financial Services Inc. are among the growing ranks of companies whose annual shareholder reports now include artificial intelligence as a risk factor. About 55 companies mentioned AI in the risk-factor section of their annual reports filed to the Securities and Exchange Commission in 2018, more than double the approximately two dozen the…
Hackers hack weakness. They are efficient at finding it and work relentlessly to exploit it. Now, new moves by the SEC are raising questions about whether the regulator is taking the right steps to protect America’s capital markets and investors. Warren Buffett recently declared at the 2018 Berkshire Hathaway annual meeting that cyber risk “is uncharted territory. It’s going to…
New interpretive guidance from the Securities and Exchange Commission (SEC) in February 2018 makes it clear that staff there will be paying increased attention to cybersecurity risks and how well publicly traded companies are disclosing them. Concern among investors, customers, and regulators about data protection and infrastructure safety continues to grow. A robust cybersecurity program…