Feeds

Corporate governance goals impossible - RSA

IT managers tied up in red tape

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Companies are struggling to cope with tighter corporate governance regimes, which might even work against the goal of achieving improved IT security they are partly designed to promote. The need to comply with requirements such as data protection, Sarbanes-Oxley, Basel II and other corporate governance reforms is tying up IT managers in red tape, according to a banking security expert. "Recent legislation is having a negative impact on risk management," said Michael Colao, director of Information Management at Dresdner Kleinwort Wasserstein.

In some cases, the law has made IT managers legally responsible for adherence to corporate governance rules. Colao says that this may not necessarily be a good thing. "CIOs are now relying on convoluted processes rather than using sound business judgement based on years of experience. A process is easier to defend in court than personal judgement. This means that in many cases unnecessarily cautious decisions are being taken because the CIO is focusing on their own personal liability, rather than what is best for the business," he said.

Different implementations of the European Data Protection Directive in different countries are creating a headache for multinational firms, according to Colao. "This legislation was brought in as part of the EU common market and was supposed to provide clarity and harmony across Europe. Because each country implements legislation in very different ways, the result is a very fragmented and disjointed approach which causes all sorts of problems, particularly for global organisations," he said.

Colao made his comments at the Axis Action Forum, a meeting of IT directors sponsored by RSA Security, in Barcelona this week. RSA Security said differences in European legislation highlighted by Colao were a real problem for its clients.

Tim Pickard, strategic marketing director at RSA Security EMEA, said: “The nature of implementation of EU directives in member states means that it is almost impossible for today’s global CIO to be fully compliant and is therefore likely to be breaking the law in at least one member state.”

Business managers becoming fed up with FUD

In a separate study, more than a third of the 30 delegates to the Axis Action Forum admitted that their Board had never asked for an update on security or implications of security breaches. The finding suggests widespread boardroom indifference to security issues despite the high profile security has been given in the media and by numerous industry initiatives.

Firms only take security seriously in the aftermath of attacks, according to one delegate. Part of the reason could be that business managers are becoming inured to alarmist security pitches. Simon Linsley, head of consultancy and development, Philips said: "For years we have had to go to the Board with messages that create the Fear of God. We can no longer rely on these doom and gloom messages - we have to go to the Board with solutions that add value to the business."

The Axis Action Forum attended by more than 30 CIOs, IT directors and heads of security from a range of medium to large businesses. ®

Related stories

UK corporate governance bill to cost millions
Hackers cost UK.biz billions
IT voices drowned in corporate governance rush
Big.biz struggles against security threats

Build a business case: developing custom apps

More from The Register

next story
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Premier League wants to PURGE ALL FOOTIE GIFs from social media
Not paying Murdoch? You're gonna get a right LEGALLING - thanks to automated software
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
XBOX One will learn to play media from USB and DLNA sources
Hang on? Aren't those file formats you hardly ever see outside torrents?
Class war! Wikipedia's workers revolt again
Bourgeois paper-shufflers have 'suspended democracy', sniff unpaid proles
'Aaaah FFS, 'amazeballs' has made it into the OXFORD DICTIONARY'
Plus: 'EE, how shocking, ANOTHER problem I face with your service'
prev story

Whitepapers

Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Solving today's distributed Big Data backup challenges
Enable IT efficiency and allow a firm to access and reuse corporate information for competitive advantage, ultimately changing business outcomes.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.