What is the role of the board-level technology committee?

Research output: Contribution to journalReview articlepeer-review

Abstract

The board-level technology committee (TC) could play a significant role in enterprise risk management. Unfortunately, only about 10 % of public companies have chartered such a committee. There is evidence that the TC mitigates the negative market reaction to data breaches (Higgs et al. 2016), suggesting that investors expect TCs to control operational IT risk—the risk associated with technology that facilitates the company's core operations, including external risk such as data breaches. Based on a review of 50 existing TC charters, we find that TCs today focus instead mainly on strategic risk—the risk associated with strategic product technology development—with under half of TCs including operational risk management in their charters. We see this as a potential disconnect between stakeholder expectations of risk management and company delivery on that expectation.

Original languageEnglish
Pages (from-to)43-47
Number of pages5
JournalJournal of Corporate Accounting and Finance
Volume30
Issue number4
DOIs
StatePublished - Oct 2019

Keywords

  • board of directors
  • corporate governance
  • risk management
  • technology committee

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