| Boards advised to make security a key part of corporate governance The Business Roundtable (BRT) has called on corporate boards of directors to make security a key priority for companies and to bring security under board review. The BRT, an association of CEOs of 150 of the US's leading companies, is adding a security component to its Principles of Corporate Governance, a set of best practices designed to guide corporate governance practices. "In today's world, America's security is inexorably linked to our nation's economic growth," said Franklin D. Raines, chairman and CEO of Fannie Mae, and chairman of The Business Roundtable's Corporate Governance Task Force. "It is more vital today than ever before that corporate boards review management's security plans and procedures." "Providing for the security of employees, facilities, customers and communities is a fundamental function of business in this post-9/11 era," said C. Michael Armstrong, chairman, Comcast Corporation, and chairman of The Business Roundtable's Security Task Force. "It should be a top priority of management and corporate boards of directors." The BRT is urging boards of directors to designate management responsibility for business resiliency and to periodically review management's plans as part of their oversight function. BRT says that business resiliency can include risk assessment and management, business continuity, physical and cyber security, and emergency communications. "America's corporate governance, financial reporting and securities market systems are the best in the world, but we are constantly looking for ways to further strengthen them," Raines said. "The Principles of Corporate Governance we issued last May are a roadmap for excellence in corporate governance, and we're now providing additional guidance for companies to reflect the increased importance of security." "The BRT's recommendation shows that business leaders understand the critical importance of improving security," England said. "The federal government changed its governing structure by creating the Department of Homeland Security in order to enhance our ability to deal with the threat of terrorism, and the Roundtable is right to encourage management and boards to take greater responsibility in overseeing security procedures in their companies."
•Date:
28th April 2003 •Region: N. America •Type:
Article •Topic: BC
general |
