Bloomberg Law: Privacy & Data Security brings you single-source access to the expertise of Bloomberg Law’s privacy and data security editorial team, contributing practitioners,...
U.S. companies that handle sensitive consumer data should add cybersecurity professionals to their boards, a former Department of Homeland Security official told a House Commerce subcommittee Nov. 1.
Companies have been pressured by Congress and consumers to improve their cybersecurity oversight following the Equifax Inc. data breach that affected at least 143 million individuals in the U.S. Equifax recently added a cybersecurity pro to its board. Companies have also begun to focus more on cybersecurity risks when evaluating business decisions.
Failing to include board members and senior executives with cybersecurity expertise, or appointing them but not listening to what they say, poses serious risks for companies.Companies that handle sensitive data, especially consumer credit information, should have senior-level board members with cybersecurity experience, James Norton, founder and president of security consulting group Play-Action Strategies LLC and former DHS deputy assistant secretary for legislative affairs, said in response to questions from House Commerce Digital Commerce Subcommittee Chairman Bob Latta (R-Ohio). Cyberthreats should be considered at most board meetings, Norton said.
Companies are also adding senior-level cybersecurity executives in recognition of the significance of ongoing data security risks.
In the past, “boards have focused keenly on business drivers only and not cyber security risks,” but they are now “trending towards diversifying ranks to include” cybersecurity pros that “report directly to the CEO,” Peter Tran, general manager and senior director in the Worldwide Advanced Cyber Defense Practice at RSA Security in Boston, told Bloomberg Law Nov. 1.
The risk of burying important security professionals to corporate subcommittees “or ad hoc security councils” can cripple companies facing a data breach, he said.
Adding cybersecurity professionals to boards and in executive-level roles won’t help if their voices aren’t heard.
Cybersecurity pros “should be a critical component of the board not only in an advisory capacity but as part of the overall governing and decision process,” Tran said. The risk of not giving them enough say in actionable positions “can end up with a ‘thanks but no thanks’ scenario if security is seen as an inconvenience,” he said.
To contact the reporter on this story: Daniel R. Stoller in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Donald Aplin at email@example.com
Further information on the hearing is available at http://src.bna.com/tSA.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)