What Happens to CEOs When Their Companies Get Hacked? Target’s was Fired

We’ve all heard about the firing of Target’s CEO after the company’s widely publicized data breach, but should other CEOs be worried?

“This should be a harbinger for CEOs and board members of companies large and small. The cost to Target for the data will be in the billions by most estimates. Even for CEOs who do not report to outside boards, the cost of a significant data breach, particularly if not covered by insurance, could cost them their company,” writes author Eric Basu in a recent Forbes article.

“The loss of corporate data, violations of privacy laws and the degrading or total shutdown of business operations is becoming commonplace in today’s connected environments. These incidents put every organization — and executive team member — at risk,” Basu writes.

“This means each person on a company’s management team must be armed with the requisite knowledge to make informed decisions about cybersecurity — not just an understanding of the basic concepts. Executives must understand more in-depth technological concepts and applicable laws and the future opportunities for senior IT and business managers, innovators and information entrepreneurs to solve information-security challenges.”

Basu continues:

“This will allow the CEO and members of the management team to do the following:

  1. 1) Understand the difference between compliance and security.
  2. 2) Understand the ramifications of new technology introductions to the workplace.
  3. 3) Understand the implications of a serious data breach, including potential losses from litigation and customer confidence loss.
  4. 4) Have a clear understanding of the plan and responsibility chain should a serious breach occur, including the internal and external communications plan.”

“Many times CEOs and their C-level reports are frustrated because of the lack of appropriate training for them to determine, at the executive level, what the real risk to their company is. They don’t want to get into the technical details of what the Heartbleed bug does, for example, but they do want to be able to quantify in their mind what their risk is. With the firing of the Target CEO, that risk is now a personal as well as a corporate risk to members of the executive suite,” Basu concludes.

 

For more information, click here: http://www.forbes.com/sites/ericbasu/2014/06/15/target-ceo-fired-can-you-be-fired-if-your-company-is-hacked/