This week I have experienced an echo of this pattern at the 2013 WEF meeting. But this time my unease does not revolve around any financial threats, but another issue – cyber security.
[The] crucial point is this: even if some companies are on top of the issue, others are not, and without more public debate, it will be tough to get boards to act. Without more disclosure it will also be difficult for investors to start pricing in these risks. So it is high time shareholders began demanding more information from companies about the issue – not just about the scale of the cyber attacks, but also the moves being taken to fend them off.
And if companies refuse to answer, then shareholders – or the government – should ask them why. After all, if there is one thing we learnt from 2007, it is that maintaining an embarrassed silence about risks does not usually make them go away; least of all when there is potential damage to consumers (and investors) as well as the companies under attack.
So writes Gillian Tett in the Financial Times, “Time to break wall of silence on escalating cyber attacks”
Thanks to Russell Thomas for the pointer.