“EU May Fine Facebook $1.63 Billion Over Breach,” The Wall Street Journal, October 1, 2018 B1. The hack of 50 million Facebook users reported earlier may lead to a large fine against Facebook (4 times its annual revenue). The regulator in Europe has demanded more information.
Impact of stock value not reported.
Filed under Compliance, Compliance (General), Controls, Corporation, Directors, Duty, Governance, Information, Internal controls, Investor relations, IT, Oversight, Protect assets, Security, Value
“Facebook Hackers Access Nearly 50 Million Accounts,” The Wall Street Journal, September 29, 2018 A1. Unknown hackers may have gotten access as early as July 2017 by exploiting flaws in the system’s code. May have taken over your account and gotten to your posts and private messages, and may have the credentials to access other services, like Tinder and Spotify.
Is Facebook responsible for making sure its site is secure? How did the executive in charge of safety and security miss this? Does the Board at Facebook have liability? Facebook no longer has a Chief Security Officer.
Filed under Access, Board, Compliance, Compliance (General), Controls, Corporation, Directors, Duty, Duty of Care, Employees, Governance, Internal controls, IT, Oversight, Oversight, Protect assets, Protect information assets, Security, Technology, Third parties
What you do when an important executive is alleged to have violated company policy says a lot about your compliance program.
“Claims About Executive Tested Uber Overhaul,” The Wall Street Journal, September 27, 2018 B3. Senior executive investigated; rather than being terminated, he received a formal warning (apparently, informal was not sufficient), his bonus was reduced Why do you give bonuses to people who violate company policy?), and was required to take sensitivity training.
This at a company that had a rather sordid history of sexual harassment.
How will Uber convince its remaining employees that this time it is serious? Do you believe them? Is this an effective compliance program under the Federal Sentencing Guidelines, assuming that’s the appropriate measure?
Where’s the Board? Do they care?
Filed under Board, Compliance, Compliance (General), Controls, Corporation, Culture, Directors, Duty, Employees, Governance, Oversight, Oversight, Uncategorized
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