Cyber Risk Oversight – NACD’s Director’s..
Cyber Risk Oversight – NACD’s Director’s Handbook Series 2014
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In the past 20 years, the nature of corporate asset value has changed significantly, shifting away from the physical and toward the virtual. One recent study found that 80 percent of the total value of the Fortune 500 now consists of intellectual property (IP) and other intangibles.1 Along with the rapidly expanding “digitization” of corporate assets, there has been a corresponding digitization of corporate risk. Accordingly, policy makers, regulators, shareholders, and the public are more attuned to corporate cybersecurity risks than ever before. Organizations are at risk from the loss of IP and trading algorithms, destroyed or altered data, declining public confidence, harm to reputation, disruption to critical infrastructure, and new legal and regulatory sanctions. Each of these risks can adversely affect competitive positioning, stock price, and shareholder value.