Facebook has been hit with a fine, a slowdown in user growth and a fall in its share price since news of the Cambridge Analytica data scandal broke in March.
In the months since, the social media company’s handling of the scandal — where data was improperly obtained from up to 87m users — has been heavily scrutinised by regulators, politicians and users.
Facebook chief operating officer Sheryl Sandburg this week testified before Congress, facing hours of questioning from the Senate Intelligence Committee. She said the company was “strengthening our defences” against targeted hacking and data collection.
It is also being closely watched by corporate governance specialists at big asset managers who are increasingly concerned that senior management and board directors at listed businesses across the world are ill-prepared for potential data breaches and other technology problems.
“We see cyber security as a key emerging risk,” says Rupert Krefting, head of corporate finance and stewardship at M&G Prudential, which oversees £342bn in assets. “It is hard for us to judge if they [management and board directors at listed businesses] really do know the technology…
