Technology
Data Security: Why the responsibility sits with the C-Suite
Global Banking and Finance Review
Company
Data has become the most valuable asset for companies of all sizes. By 2023, the big data analytics market is set to reach
Data has become the most valuable asset for companies of all sizes. By 2023, the big data analytics market is set to reach $103 billion.
The sheer volume of data being generated and stored by businesses has increased exponentially over the past decade, leading to increased risks and vulnerabilities associated with data breaches. According to IBM, the average cost of a data breach in 2020 hit a whopping $3.86 million. This not only impacts a company’s finances but also its reputation and customer trust, and can even breach regulatory compliance. Resulting in companies seeking efficient and reliable data security to protect their assets and maintain their operations.
Below, Simon Pamplin, CTO at Certes Networks discusses just why data security needs to be at the top of the C-Suites agenda, the importance from a network and data security perspective and the repercussions of a data breach to the C-Suite and the personal ramifications should a breach occur.
The C-Suite’s responsibility sits further than just overseeing the management and operations of a company, from financial performance to strategic planning, and risk management.
According to the National Association of Corporate Directors, the core responsibilities of the C-Suite can be summarised into the following areas:
But how does the management and security of data fall into these responsibilities and why.
A data breach can result in financial losses, damage to the company’s reputation, and even legal action, all of which can negatively affect the board’s ability to fulfil its responsibilities.
Theft of customer data can have serious consequences not only for the business as a whole but for the individuals responsible for the business. In most recent cases CEOs have received suspended prison sentences and lost their jobs – highlighting just how important data protection is at the board level.
So just how is a C-Suites responsibility affected when a data breach occurs:
Too many senior leaders are still relying on the network security team to safeguard data. They are not inquiring enough to identify any potential risks to the business, which can be considered reckless. Neglecting to safeguard data is equivalent to failing to protect the company, its employees, and shareholder value. Therefore, it is imperative that the C-Suite must understand the significance of data security and the impact it has on their accountability.
Traditionally, when it comes to data management the C-Suite would hire a Chief Risk Manager and a team to manage its data and the responsibility would sit with them and not be classed as a wider business issue. However, CEOs are now personally liable for failing to meet regulations, making data protection a wider business issue that requires a shift in mindset.
A crucial element of data protection sits at keeping data secure across its entire journey, from the source right the way through to its destination. Encrypting the data to keep it protected.
Encrypted security measures can shield the data from unauthorised access, rendering it useless even if a hacker gains access. This means that in the event of a breach, the company will not be held liable for data stolen, fines, reputational damage, or the personal liability of the senior team.
The responsibility of implementing the appropriate security frameworks lies with senior management, who should conduct internal audits to ensure that only authorised individuals have access to the data and that it is unusable to any other unauthorised recipient. Hence, a data-driven approach is crucial for effective security measures and complete protection of the business.
Data security refers to the protective measures and protocols implemented to safeguard sensitive information from unauthorized access, breaches, and data loss.
Risk management is the process of identifying, assessing, and prioritizing risks followed by coordinated efforts to minimize, monitor, and control the probability of unfortunate events.
Corporate governance is the system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.
Compliance refers to the adherence to laws, regulations, guidelines, and specifications relevant to an organization's business processes.
A data breach is an incident where unauthorized access to confidential data occurs, potentially leading to data theft or exposure of sensitive information.
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