The Unintended Consequences of a Data Breach
With the internet and digital technologies growing at a rate faster than a speeding bullet, there are more chances than ever for boards to accomplish incredible feats.
There’s software, apps, social media, and an array of tech-forward instruments that can take organizations to new heights.
However, just as much as these new technologies can work for boards of directors, they can also work against them. And when they do, it can have disastrous consequences.
For instance, disgruntled ex-employees can go onto social media or even job review sites and rake a company’s name over the coals. Or, maybe a board decides to invest in the wrong tech, and it ends up costing the company millions in productivity.
Yes, this tech age in which we live is undoubtedly a double-edged sword.
No more is this evident than when it comes to the genuine risk of data breaches and the harmful consequences it can have on a board or committee.
Let’s investigate this notion further:
Why Boards Need to Worry About Data Breach
In a given board meeting packet, there’s an array of valuable information that is highly privileged. There’s a reason these matters are being discussed by the board. And that’s because it’s confidential and integral to the growth and overall health of the organization.
Then, paint a scenario where that sensitive data is breached by someone with malicious intent, such as a competitor who’s not exactly playing above board.
In most instances, share prices will drop, and the organization is suddenly dealing with disastrous financial consequences. On top of that, both shareholders and stakeholders (such as employees and clients) might lose faith in the company.
Furthermore, the organization will experience a severe blow to its reputation. Sure, it’s not their fault that someone committed such a reprehensible act. Still, when these things happen, companies tend to appear incompetent.
Now, this would all be relatively moot if data breaches weren’t so prevalent in today’s climate. Unfortunately, they aren’t some mythical boogie man being used to scare people into taking security measures. They are, in fact, a tremendously scary reality.
According to Risk Based Security, breaches increased by 33% over 2018, with a total of 7.9 billion exposed records. As of early November 2019, the research firm labeled the year as the worst on record.
Finding the Right Solution
Okay, now that all the facts are on the table, it’s time for everyone to calm down.
No, the world isn’t coming to an end, and it’s not as though board members reading this are at immediate risk to data breaches.
However, avoiding such a catastrophic situation comes down to being proactive. Being reactive means something terrible has already happened, and by then, the damage is already done.
Meaning, it’s time to prioritize secure file sharing amongst the board and committee.
Fortunately, one of the main benefits of the digital age the technologies that fight against these things. There are board portals that allow directors to access highly confidential, privileged materials from anywhere without worrying that they’ll end up in the wrong hands.
Do you want to find out more about this highly secure board software solution? Then contact us today!