The Failure Of Corporate Governance Will Cost YOU, Your Board, Shareholders & Customers Dearly
By Nick Ashton, Founder, CEO, Tracometry Group of Companies.
As they say in the law courts, “Ignorance is not an excuse to circumvent the law”!
So who is charge? Is it the Board of Directors, the shareholders or is it the CEO, CFO and other management team members? The CEO’s etc. are just the hired help and they can be fired at will, but they do have the daily running of the company to handle and have been trusted to do so.
Just like the guy or girl who cleans the toilets, they have a job to do and importantly they must do it well! If not, it stinks, is unhealthy and the word spreads, as do the germs!
The power of the office of the CEO is massive! It also changes people to think they are above being human, talking to people outside of their “click”. Some say they do not have the time in the day to effectively look at understand all the information that is directed at them.
They have a Gate Keeper, who, in most case is a “pain in the ass” and in their own mind have to stop those that call dead in their tracks and get rid of them, no matter what they have to say.
So who is in charge of the information from the real world and not allowing it to get through?
Let us get right into Liability. As supposedly the “buck stops” at the desk of the CEO, he or she is last in line and liable for all the company does, doesn’t do and fails to protect its customers/clients.
Let me put it another way, Duty of Care. I believe it is a simple way of saying the same thing and brings it into a realm that most we hope understand.
For instance, theft of data is occurring at an ever increasing rate and is more important than you can ever think! The Board Room should not be a room of them and us, but it is! The IT Department should be involved in that room and management in the computer room. Stop this building of Kingdoms!
Back in the day, all the information was on paper and stored in filing cabinets, the cabinets no one could find the key for when it was important to get the information. Now, it is on servers or supposed clouds and not even really in the building. It is sitting somewhere and is accessible by a key stroke and a monitor. Which is hackable by cyber-terrorists.
Your IT Department is not just some department that has special air-conditioning and a bunch of geeky nerds, who speak a whole new language that you do not understand!
Your Trust & Security Director is more important than you, as they should have those keys to unlock the information, proactively continue this important work. Sadly as they are always being reactionary, the important protection gets pushed to the wayside. Yes doors are left open and hackers get in!
In this case it is a username and password. Which are not secure by any means! Most CEO’s do not understand the technology and the computer department gets treated in very demeaning manner.
They should not!
Today, Hacking, Phishing, Man in the Middle Brutal Attackers want what you have and when they get inside the core of your company, the data, they then have access to the lifeblood of the company, the client/customer.
If you do not believe it, ask the CEO of Target and his former Trust & Security Director, did they understand what was going on and how vulnerable they were? No, it is the after the fact, facts that sink you. Ask the millions of customers how they feel and if they trust Target or anyone who takes a debit/credit bank card.
Target heard loud and clear with 46% drop in profits in the 4th quarter!
I can assure you, KEYTALK is not all mouth and just wanting to sell you something and make you pay us a fee.
KEYTALK has the solution and is a solution that has been protecting data in motion in all of Europe for over twenty years. Now, the rest of the world can be protected as well! Please ask us the question of how we can protect you!
In respect to Duty of Care, our responsibility to others has always been a high priority and logically you would think everybody would understand the need for this important factor in our society.
Duty of Care requires everything reasonably practicable to be done to protect the health and safety of others in the workplace. This duty is placed on all employers, their employees and any others who have an influence on hazards, security and day-to-day activities in a workplace.
The latter includes contractors and those who design, manufacture, import, supply or install plant, equipment or materials used within a workplace.
Reasonable practicable means that the requirements of the law vary with the degree of risk in a particular activity or environment, which must be balanced against the time, trouble and cost of taking, measures to control the risk. It allows the duty of care holder requiring change in technology and knowledge to be incorporated but only as and when it is efficient to do so. The duty holder must show that it was not reasonably practicable to do more than what was done or that they have taken reasonable precautions and exercised due diligence.
Pretty straight forward, you know about it and do nothing or ignore it, you are liable and will pay! It does not have to be that way!
In terms of Corporate Governance, it is said “Corporate governance refers to the set of systems, principles and processes by which the said company is governed. They provide the rules as to how the company can be directed or controlled such that it can fulfill its goals and objectives in a manner that adds to the value of the company and is also beneficial for all stakeholders in the long term. Stakeholders in this case would include everyone ranging from the board of directors, management, shareholders to customers, employees and society. The management of the company hence assumes the role of a trustee for all the others.”
I was once told by a very successful account, that company is a dumb, deaf and mute innate object and has to have humans guide it from A to B. There lies the problem!
In researching the responsibility of all those involved in running a large or small corporation, they are exactly the same in principle.
Corporate governance or Duty of Care is based on principles such as conducting the business with all integrity and fairness, being transparent with regard to all transactions, making all the necessary disclosures and decisions, complying with all the laws of the land, accountability and responsibility towards the stakeholders and commitment to conducting business in a most ethical manner.
Corporate governance is the need for those in control to be able to distinguish between what are personal and corporate funds whilst managing a company.
Your largest threat is the security of your information that is desperately wanted, at no matter what cost by others, who will illegally steal it from you.
Doing nothing is foolish!
KEYTALK will STOP IT, Just Ask!
WE are in the NOW and
KEEP YOU; in the KNOW…
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