The Business Alert
On April 28, 2021, the FTC issued a business alert reminding corporate boards to make data security a priority and to advocate implementing a top-down approach to the issue. The alert warns: “In addition to the significant costs to consumers, data breaches, network intrusions, and looming cyber threats can open up a firm to substantial financial costs, reputational hits, and legal liability.” The Business Alert suggests that data security begins with corporate Board of Directors instead of the IT Department.
The Recommendations
FTC staff offered five “common-sense recommendations for conscientious directors.”
Make data security a priority. This includes building a team of stakeholders from across the organization and holding regular security briefings.