Boards can learn from Target CEO about Cyber-crime
Target the second largest retailer in the United States let its Chairman & CEO George Stienhafel leave today after he took responsibility for the massive data breach last year. The data breach exposed personal information of up to 110 million Target customers.
Why is this a learning lesson to other boards?
According to two IBM-commissioned studies announced today from the Ponemon Institute, the average cost of a data breach increased by 15% globally, reaching an average of $3.5 million. The majority of companies surveyed say targeted attacks are the greatest threat, costing them on average $9.4 million in brand equity alone. Pending litigation and Loss of Reputation in the customers eyes.
Cyber-crime is taking front position in Reputational Risks to companies. Terrorists are targeting American and global brands to carry out a new kind of warfare over the internet.
- Global Boards need to understand how technology related Risks are impacting the modern enterprise? However this is secondary in action.
- The first dialogue Global Board Advisors Corp (GBAC) is advising our customers is to strategically think do they have the right skills around the boardroom table helping understand Cyber-crime and setting the tone at the top for management?