director 360 press release

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Nearly half of boardroom directors are failing to discuss cyber security risks, according to Deloitte’s Global Director 360° survey

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New York, 2 October 2014 –Cyber security issues are still not being given sufficient attention by global organizations, according to the results from the Deloitte Touche Tohmatsu Limited’s (DTTL) Global Director 360°: Growth from all Directions survey. Half (49 percent) of boardroom directors do not currently discuss cyber security risks as part of their technology agenda. In addition, over a quarter (27 percent) of the global directors’ surveyed fail to discuss technology risks at all.

The Global Director 360°: Growth from all Directions survey provides the perspective of 317 boardroom directors at public and private companies across 15 countries and regions. The survey highlights changes in key governance, regulatory, and compliance concerns, that companies around the world are facing in today’s challenging business environment.

Dan Konigsburg, DTTL Managing Director, Deloitte Global Center for Corporate Governance, comments: “In light of all the recent news surrounding security incidents and data breaches, it is surprising that we are not seeing an increased number of boards discuss the security risks facing their company. Failure to take preventative measures to protect against breaches in security poses a huge risk to organizations. Such risks can adversely expose organizations to internal control deficiencies and reputational risks; that may ultimately result to in lost revenue.”

Marielle Legair
Global Communications
Deloitte Touche Tohmatsu Limited
Tel: + 1 (516) 918-7170


Highlights from the survey include:

  • Diversity in the boardroom - Almost two-thirds (63 percent) of global boardroom directors have not introduced diversity policies for board composition in their organizations, In addition, sixty-two percent of the directors surveyed stated that their boards have not implemented age or term limits, or that they were unsure of such limits. “The survey results reveal that while good progress is being made in improving diversity in the boardroom; there is still a long way to go before we see significant change in terms of the numbers,” said Konigsburg.
  • Interaction between shareholders and boards expected to increase - Nearly 70 percent of respondents expect the level of interaction between shareholders and boards to increase over the next few years. However, despite acknowledging the increasing levels of shareholder scrutiny, 61 percent of directors do not have a shareholder engagement policy in place.
  • Social media not utilized by majority of board directors - Nearly two-thirds of all directors surveyed stated that their board does not use social media. “I was surprised by this result. As the world moves to an increasingly digitized environment, board members should begin to leverage social media to identify potential business and reputational risks facing their organizations,” said Konigsburg.
  • Global financial crisis no longer a key concern – Based on the survey responses, boards are becoming more confident that markets are emerging from the global financial crisis.
  • Performance moves up the agenda – The survey found 20 percent more directors stating performance as an issue on their boardroom agendas. Performance is now the second-most discussed issue, behind strategy (18 percent increase), followed by growth (13 percent increase) and shareholder value/ investors (11 percent increase). “These results may indicate that boards are moving away from austerity policies and are focusing more on company performance/operations and the creation of long-term sustainable growth,” said Konigsburg.
Global Director 360°: Growth from all Directions

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