Did you know that Australian board members and C-level executives believe the top three risks most likely to have an impact on a company’s reputation are:
- Regulatory Investigations
- Cyber risk (including data security breaches)
- Intellectual property and Brand management
“Earlier this year, Norton Rose Fulbright surveyed business leaders across Australia with regard to reputational risk, and what it means for their respective organisations. The results outline the high awareness and good knowledge of different exposures that could results in reputational damage, but also point to certain areas for improvement.”
Reputation is thew new risk from cyber security incidents and the Yahoo Verizon deal is a perfect example.
Verizon and Yahoo announced that the telco will pay $350 million less for Yahoo’s internet businesses, valuing the deal at about $4.48 billion in cash. The price reduction follow’s Yahoo’s disclosure of two massive user-data breaches affecting more than 1 billion accounts …
How to Rectify and Mitigate Your Personal, Professional and Company Risk?
One could argue this should already be undertaken as the normal course of business.
There are a few simple steps to take to mitigate risk for you and your clients.
- Undertake your own due diligence on systems you specify.
- Don’t copy and paste specifications.
- Ask for intrusion detection reports, verified by a 3rd party, of any lighting control or building management system you are proposing BEFORE you specify it.
- Update your specifications to reflect the current and future cybersecurity ecosystem and laws.
Here is an example of an updated Engineers Specification focused on Lighting Control Security.
Company Extinction Level Events
Take the recent Equifax event where 143million people’s personal data was ‘hacked’ and a class lawsuit of $70billion is underway.
Assume your personal data has been leaked.
Cancel /freeze all your credit cards and check to be sure someone is not pretending to be you and using your social security (tax file number) to dodge tax and make you pay instead.
The law suit claims that “In an attempt to increase profits, Equifax negligently failed to maintain adequate technological safeguards to protect Ms. McHill and Mr. Reinhard’s information from unauthorized access by hackers,”
Now imagine that you and your company were responsible for recommending the systems used or the alleged delays.
New Australian Legislation Increases Reputation Risk
Now consider one of these top 3 risks board members consider – Regualatory Investigations.
Under the new law the PRIVACY AMENDMENT (NOTIFIABLE DATA BREACHES) ACT 2017 – businesses in Australia will be obliged to disclose data breaches.
Read more about that here:
How will this legislated requirement for data breach disclosure IMPACT their BRAND’s reputation?
How will it IMPACT your personal brand’s reputation?
Your Company’s Brand’s reputation?
How will you MODIFY your behaviour to ensure you are not at risk?
As a minimum, asking questions with respect to the client’s appetite for risk is essential.
Then, undertaking the relevant due diligence to ensure the lighting control and building systems you recommend and specify meets their cybersecurity risk expectations is necessary.
If its not done the consequences for your you and your company’s reputation are clear.