How does SASB treat "data privacy and cybersecurity" in terms of materiality?

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Multiple Choice

How does SASB treat "data privacy and cybersecurity" in terms of materiality?

Data privacy and cybersecurity are treated as financially material issues by SASB, especially for technology and consumer-facing industries. The potential financial impact of cyber incidents—such as regulatory penalties, litigation, customer churn, remediation costs, and operational disruption—means these topics often influence a company’s financial performance. Because of this, SASB uses industry-specific material topics and provides defined metrics and disclosure guidance to report data privacy and cybersecurity in a consistent, decision-useful way. This concern spans the whole organization and governance processes, not just IT, and reporting is expected rather than optional.

Data privacy and cybersecurity are treated as financially material issues by SASB, especially for technology and consumer-facing industries. The potential financial impact of cyber incidents—such as regulatory penalties, litigation, customer churn, remediation costs, and operational disruption—means these topics often influence a company’s financial performance. Because of this, SASB uses industry-specific material topics and provides defined metrics and disclosure guidance to report data privacy and cybersecurity in a consistent, decision-useful way. This concern spans the whole organization and governance processes, not just IT, and reporting is expected rather than optional.

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