Directors and officers have traditionally been held liable for negligent financial decision-making and breach of fiduciary duty. But that liability has expanded to include nearly every type of risk an organization may face.
As executives grow more involved with their risk management departments, they tacitly accept responsibility for a range of risks. Especially in the case of cyber breaches, which garner high-profile media attention and stir mistrust and anger among customers, senior management increasingly comes under fire when private information is stolen. Target serves as one example; the retailer’s CIO and CEO both eventually resigned following its infamous hack during the 2013 holiday season.
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