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Re: [Full-disclosure] Fwd: Rate Stratfor's Incident Response



On Thu, 12 Jan 2012 03:41:48 CST, Laurelai said:

> Well that's what you get when you let profit margins dictate security
> policy.

You *do* realie that in the US, most corporations are legally *required* to let
profit margins dictate *all* policy, security and otherwise?  The corporate
officers are required to maximise shareholder value, and in fact can be (and
often *are*) sued if they decide "Project XYZ would make a boatload of money,
but we're killing it off because it's morally wrong" or similar.  The exception
is if they reincorporate as a "benefit corporation", which has only been
available for a year or two, in only several states, and apparently only 100
corporations (out of the hundreds of thousands in the US) have taken this path 
so far...

http://www.latimes.com/business/la-fi-benefit-corporations-20120104,0,5492616,print.story

Bottom line: In most corporations, the CSO *can't* spend more money on security
unless he can show increased profits by doing so.   So if you're the CSO and 
want
to spend $15M more on security, you have to show how doing so will result in
a better return for the shareholders.  And as I pointed out earlier in this 
thread,
even the big hacks at Sony and TJX didn't affect *the shareholders*, so under 
current
US corporate law, those companies actually did what they were *required* to do.

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