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Boards need data security on radar: AMP Capital

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Shareholders are increasingly seeking assurance that the companies they invest in are considering data and cyber security at board level, according to AMP Capital's latest Corporate Governance Report.

The report argues that given the potential for significant reputational and financial implications of cyber security breaches the issue needs to be well-understood and prioritised. Cyber and data security can no longer be considered purely a technology issue and should be included in discussions between shareholders and company management and boards.

AMP Capital Corporate Governance Manager Karin Halliday said that the contribution technology makes to a company's value is no longer driven purely by access to data but rather by how efficiently a company captures, manages, understands, leverages and protects that data.

'Understanding a company's approach around cyber-attacks helps us understand their quality of governance, risk management and leadership. Well-governed companies are more likely to have a better understanding of the cyber risks and opportunities they face.

'How a company considers these factors may ultimately have the greatest impact on a company's ability to generate superior long-term returns for shareholders,' said Ms Halliday.