In today’s business environment, information is a powerful and valuable asset. Organizations that use information wisely and strategically can reach customers faster and with more precision. But in today’s highly regulated environment, information carries substantial risk, and, with the deluge of new media types, organizations that do not use information wisely may be thrown into a digital dark age.

Senior management and directors are responsible for navigating the strategic shoals the organization faces, including those of information assets and their myriad risks. Failure to do so may lead to losses and, in the extreme case of unconsidered failure to act, even liability. On the other hand, an organization can compete more effectively and with greater trust across disciplines when senior management and boards decide to confront these issues head-on and insist that the determination of acceptable risks and necessary costs are aligned with the organization’s long-term strategy and mission.

Originally published in NACD Directorship on May 27, 2014.