Information governance

The Companies Act provides that a director must exercise powers and perform the functions required of and assigned to directors in good faith, for a proper purpose, in the best interests of the company and with the degree of skill, care and diligence that may be reasonably expected of a person carrying out the functions of a director and having the general, knowledge, skill and experience of that director. It is also statutorily required of a director to take reasonably diligent steps to become informed about how a director must exercise his or her responsibilities.

Information is the lifeblood of every modern business. As such it is incumbent upon directors in fulfilling their function to take responsibility for information and communications technologies used by a company in the course of its business in processing information and for the information itself.

The obligations of the processing information appropriately and providing adequate security safeguards in the processing of personal information are brought into sharp focus by the Protection of Personal Information Act. Directors should be aware of their obligations in terms of the Companies Act, as amplified by the King III report, and all other relevant information-related legislation and regulation governing the company’s business.

Privacy Online assists boards in understanding their obligations, and the directors’ oversight of the management, security and protection of personal information in general, and the specific obligations relating to the processing of information, including personal information, that may be central to a company’s business.

  • 08 August 2018 - 13:41:00
    On the 25th July 2018 as a result of announcements that were made by Facebook relating to its future revenues the market value of Facebook dropped by US$ 148 billion (or R1,95 trillion). This is almost half of South Africa’s total GDP in 2016.

    While there may be several reasons for the decline in Facebook’s revenue which led to the sell-off of shares, one of the three primary factors for the decrease in projected profitability of Facebook is the focus on privacy and security

  • 08 August 2018 - 13:36:00
    As I wrote in a previous article, South Africa according to the PWC Global economic crime and fraud survey of 2018 suffers the second highest number of cybercrimes of all the countries in the world. While I have no statistics to support this I would suggest that internet banking fraud must rank as one of the primary attack vectors for cybercriminals.

    The Ombudsman for Banking Services of South Africa (Ombud) reported that for the first time in 2017 internet banking fraud was the category of crime that was most prevalent of the disputes that the Ombud has been requested to deal with. No less than 1377 internet banking complaints were closed by the Ombud in 2017. It is clear that significantly more citizens are victims of internet banking fraud as not all of the matters have been referred to the Ombud.