From: Journal of Accountancy
By Ken Tysiac
In a business environment where a damaging Twitter post can have disastrous effects on a company’s financials, reputational risk remains the top nonfinancial concern for corporate directors, according to a new survey report.
Another risk rooted in technology—cybersecurity and information technology risk—is rising quickly among directors’ concerns, according to the fifth annual Board of Directors Survey report by accounting, tax, and consulting firm EisnerAmper.
The more than 250 directors participating in the survey were asked which areas of risk—aside from financial risk—were most important to their board. Respondents—who participate on boards of publicly traded, private, and private-equity-owned companies as well as not-for-profits in the United States—were allowed to list multiple areas of risk concern.
Almost three-fourths of all respondents (72%) listed reputational risk among those areas, nearly identical to the 73% who listed reputational risk in 2013. Meanwhile, cybersecurity and IT risk rose nine percentage points from 2013 to 62%, overtaking regulatory compliance risk, which fell six percentage points to 50%.
Thank you for your such a valuable information that you shared here. keep sharing the information with us. good job.