October 19, 2019

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October 17, 2019

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Risky Management: Cybersecurity Breaches and Social Media Use Are Top Concerns for Boards

EisnerAmper’s Fifth Annual Board of Directors Survey highlights cybersecurity breaches and social media use as top risks that concern boards of directors in 2014. With reputation, cybersecurity, and social media largely intertwined, the survey notes that the associated risks have captured the attention of most boards.

The survey’s key findings include the following:

  • Cybersecurity climbed to the second most important area of risk management to boards, only behind reputational risk. Yet, boards displayed confidence levels below 60% for both their CEOs and CFOs when asked if such individuals have a strong understanding of cybersecurity.

  • Boards also showed little confidence in their management’s knowledge of social media. In fact, many executives admitted that they lacked understanding of new media and cyber issues, which are areas where “mere general knowledge can miss the critical nuances necessary for effective strategic and operational decisions.”

The survey interestingly shows that, as data breaches become more public (affecting reputations and brands) and regulation with respect to reporting breaches gains more focus, cybersecurity and social media risks are not only operational concerns, but also gain attention at the highest levels.

Copyright © 2019 by Morgan, Lewis & Bockius LLP. All Rights Reserved.

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About this Author

Peter Watt-Morse, Morgan Lewis, Intellectual property lawyer
Partner

Peter M. Watt-Morse, one of the founding partners of the firm’s Pittsburgh office, has worked on all forms of commercial and technology transactions for more than 30 years. Peter works on business and intellectual property (IP) matters for a broad range of clients, including software, hardware, networking, and other technology clients, pharmaceutical companies, healthcare providers and payors, and other clients in the life science industry. He also represents banks, investment advisers, and other financial services institutions.

412-560-3320
A. Benjamin Klaber, Intellectual property attorney, Morgan Lewis
Associate

A. Benjamin Klaber practices on a Morgan Lewis team that counsels clients on technology, outsourcing, and commercial transactions, intellectual property matters, mergers and acquisitions, private equity, venture capital, and general corporate matters. Before law school, Benjamin was a quantitative analyst in the investment management industry after earning a B.S.E. in operations research and financial engineering. He is a member of the Emerging Leadership Board of the Pittsburgh Venture Capital Association.​​

412-560-7422