Sunday, April 29, 2012

Board of Directors' Communication Portals

by Jason Clark, CSO, Websense
Imagine that criminals broke into headquarters and bugged your executive offices for insider information—and then made millions trading on that information.
That's what can happen if you jump into a Board Communication Systems too quickly. It has already happened: They silently monitor your Board of Directors communications until they hear insider information that they can use to strike it rich on the stock market.

A Board Communication System, often called a Board Portal, is supposed to be a secure cloud system that your CEO, CFO and board of directors use to communicate with one another to make sure any highly sensitive information about the company is protected—from insiders, the IT department, and bad guys. Information that is shared between board members can range from company strategy, to M&A plans, to non-public financial performance details. Imagine the havoc that could ensue if anyone was able to access sensitive knowledge and then use it to their advantage. 

Why BCSs Need Proper Security Measures
...If a Board Portal is breached, this could mean every one of your shareholders is a potential plaintiff (arguing that their investment has been placed at increased risk of harm due to insider trading or other stock price manipulation)... And this doesn't just affect public companies. Private companies that do business with public companies may need to start disclosing breaches to keep corporate customers as clients. (more)