Data Protection, Cybersecurity Top of Mind for Boards
In a recent MFDF webinar, ACA Compliance explained how fund directors may think through data privacy and cyber security in the current work-from-home environment and suggested virtual meeting tips, such as securing home Wi-Fi networks and conducting conversations in private spaces. Experts as well as media have noted the recent rise in remote work has also led to a spike in cybercrime. ACA Compliance wrote about an alert from the U.S. Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency warning of the huge increase in pandemic-related cybercrime and cautioned that regulatory penalties and fines associated with data breaches remain in effect during the pandemic. A Wall Street Journal article further noted that risk and audit committees of corporate boards are stepping up their reporting requirements to keep abreast of increased cyberattacks. Directors are asking companies about the cybersecurity measures they are taking to protect data while employees work from home, for instance. According to ACA Compliance, research indicates that data breaches can be costly for firms beyond the regulatory penalties; the recent average cost for a U.S. data breach reached $7.91 million.