"Cybersecurity for Investors: Why Digital Defenses Require Good Governance"
Hacker attacks and data breaches have put cybersecurity and data protection at the top of most companies' agendas. As a digitally driven world grapples with the need for more secure defenses, investors must face governance challenges and expanding economic threats. Cybersecurity and data security is a major concern in many industries. Companies must constantly examine their defenses and preparation in order to help limit the damage of a possible attack as threats evolve. Public declarations of preparedness often exaggerate the real amount of defenses in place. Despite companies' awareness, many investors do not place a strong priority on cybersecurity. Experts believe this is a mistake, especially given the importance of governance issues in the Environmental, Social, and Governance (ESG) focus. Unprepared businesses suffer financial losses, penalties, and reputational damage, which can undermine a company's image, compromise a stock, and more. Diana Lee, Director of Corporate Governance and an ESG Analyst for the Responsible Investment team at AllianceBernstein, talked to cybersecurity experts from various fields and explored the regulatory landscape to offer investors criteria for assessing cyber risk management. This article continues to discuss the costs of escalating attacks, the biggest challenges for companies, how investors can evaluate cyber risk management, and strategies for complex threats.