April 28, 2003—The Business Roundtable (BRT) has called on corporate boards of directors to make security a key priority for companies and to bring security under board review. The BRT, an association of CEOs of 150 of the nation’s leading companies, is adding a security component to its Principles of Corporate Governance, a set of best practices designed to guide corporate governance practices and advance the ability of U.S. companies to compete, create jobs and generate economic growth.
“In today’s world, America’s security is inexorably linked to our nation’s economic growth,” said Franklin D. Raines, Chairman and CEO of Fannie Mae, and Chairman of The Business Roundtable’s Corporate Governance Task Force. “It is more vital today than ever before that corporate boards review management’s security plans and procedures.”
The BRT is urging boards of directors to designate management responsibility for business resiliency and to periodically review management’s plans as part of their oversight function. Business resiliency can include risk assessment and management, business continuity, physical and cyber security, and emergency communications.
“The BRT’s recommendation shows that business leaders understand the critical importance of improving security,” England said. “The federal government changed its governing structure by creating the Department of Homeland Security in order to enhance our ability to deal with the threat of terrorism, and the Roundtable is right to encourage management and boards to take greater responsibility in overseeing security procedures in their companies.”
The Business Roundtable is an association of chief executive officers of leading corporations with a combined workforce of more than 10 million employees in the United States and $3.7 trillion in annual revenues.
