To have governance, is a single point of accountability required?
“Workers Deal With Too Many Bosses,” The Wall Street Journal, August 21, 2018 B1. According to a recent poll, two-thirds of employees have more than one boss. Some employees respond by trying to manage their bosses.
From a Governance perspective, if you have multiple bosses, who sets your priorities? Who establishes the policies and procedures and instructions that you, as an employee, must follow? How does one resolve conflicts?
And which one person in your organization bears responsibility/accountability for the overall Governance of your company’s Information? Your company’s overall Compliance with law and with company policy and procedures?
Without such a single point of accountability/responsibility, who gets punished if things don’t go right? If no one is held responsible/accountable at the C-suite level, do you really have a program-in-fact, as opposed to a program-on-paper?
Filed under Compliance, Compliance (General), Controls, Corporation, Directors, Duty, Employees, Governance, Internal controls, Supervision, Who is in charge?
“CBS to Weigh CEO’s Fate,” The Wall Street Journal, July 30, 2018 A1. Discussion over whether CEO accused of sexual harassment should stand down while the investigation continues.
Curious that Urban Meyer has to stand aside while an investigation into whether he should have reported domestic abuse by an assistant coach 9 years earlier at a different school, but Leslie Moonves remains on board as the CEO of CBS. See https://infogovnuggets.com/2018/08/07/caesars-wife/
What does it say about a company’s culture when, in the current environment, the CEO can remain in his job during such an investigation? How convinced are the rank-and-file employees that the sexual harassment policy is real, or just a piece of paper? Are the directors serious about this policy? What about other policies?
Filed under Board, Compliance, Compliance, Compliance (General), Corporation, Culture, Culture, Directors, Duty, Employees, Governance, Oversight, Oversight, Policy
Knowledge, or lack thereof, is often a good defense.
“Fiat Says It Didn’t Know CEO was Ill,” The Wall Street Journal, July 27, 2018 B1. Company says privacy of health care information meant they didn’t know that their CEO had been sick for a year.
Who knew or should have known? Was this insider information that would affect the value of investments?
Should the Board have known? Did the CEO have a duty to disclose? For more than a year!
Governance, Compliance, and Information. All in one. Add a dash of privacy.
Filed under Access, Accuracy, Board, Communications, Compliance, Compliance (General), Compliance Verification, Controls, Corporation, Directors, Duty, Employees, Governance, Inform market, Inform shareholders, Internal controls, Investor relations, Oversight, Privacy, To report, Uncategorized
This blog focuses more on the intersection of Governance, Information, and Compliance than on the implications of information security. But the topics do overlap.
So, what controls do you have in place to prevent from someone accessing your computer and changing the information there or, as important, changing how your computer operates? That’s an identified risk, right?
“Russia Hacks Its Way Into U.S. Utilities,” The Wall Street Journal, July 24, 2018 A3. Russian hackers gain access to sensitive information at utilities by compromising the utilities’ vendors and their access to the utilities’ systems. Can the hackers take control of those systems or shut them down?
Does anyone recall the name of the HVAC contractor that was the entry point for the Target hack several years ago? Contractors can be a massive IT security risk.
Is this part of Information Governance?
What duties do the directors of the utilities have to make sure processes are in place to prevent third parties from causing harm by accessing the company’s information and process control systems? And to control the third parties who do have that access? Is there a process?
Filed under Access, Board, Controls, Corporation, Directors, Duty, Duty of Care, Governance, Internal controls, IT, Management, Oversight, Oversight, Protect, Protect assets, Protect information assets, Risk Assessment, Risk assessment, Security, Third parties, Vendors
“Theranos Settle Investor Suit As Firm Runs Low on Funds,” The Wall Street Journal, July 23, 2018 B3. Investors alleged Theranos had defrauded them by making false statements about the company’s technology.
This joins the long (and growing) list of people suing for harm caused by this company. Are the directors in the dock? The CEO and former president are.
False statements are information, in a sense. The is the kind of basic, bog standard stock fraud that led to the creation of the SEC.
Who’s going to get the last drop of blood out of this stone?
Filed under Board, Communications, Compliance, Compliance, Compliance (General), Controls, Corporation, Culture, Data quality, Definition, Directors, Duty, Duty of Care, Employees, Governance, Inform shareholders, Information, Internal controls, Investor relations, Oversight, Oversight, Protect information assets
“Ex-CEO at Oil Driller Settles SEC Inquiry On Undisclosed Loans,” The Wall Street Journal, July 17, 2018. CEO had taken more than $10 million in loans from vendors in return for awarding contracts.
He used the money to cover margin calls and to maintain an extravagant lifestyle. Also caught up in the scandal was a former portfolio manager who got a seat on the company’s board.
CEOs get hammered, too, for conflicts and poor ethics.
Filed under Compliance, Compliance (General), Controls, Corporation, Culture, Directors, Duty, Employees, Governance, Internal controls, Investor relations, Oversight, Policy, Third parties, Vendors
“Chips CEO Resigns Over Conduct,” The Wall Street Journal, July 18, 2018 B1. CEO of Texas Instruments fired/forced-to-resign after two months for violating company’s Code of Conduct. Probably no package, either. No details on the nature of the violation.
It’s nice when a company enforces its policies against the CEO. Sends a message to the worker bees.
Filed under Board, Communications, Compliance, Compliance, Compliance (General), Controls, Corporation, Culture, Directors, Duty, Employees, Governance, Internal controls, Oversight, Oversight, Policy