Governance Challenges 2021–2022: Digital Transformation Oversight

Privacy and cybersecurity concerns are expanding, and with them the proliferation of laws and regulations. Boards play a key role in ensuring that companies are positioned to comply with various jurisdictional requirements, that they understand and mitigate related risks, and that they are well-prepared to play a key role in response to security breaches and incidents. Indeed, enforcement actions issued by the U.S. Securities and Exchange Commission in 2021—including penalties levied due to a lack of senior leadership awareness of the identification and response to security vulnerabilities—sharpened this focus and shed light on regulatory expectations of corporate board oversight relating to privacy and cybersecurity.