Extract from Exterro’s article “What a Reactive Approach to Data Risk Costs Your Organization”
In our previous blog post exploring the issues raised by our new whitepaper, An Executive Playbook for Data Risk Management, we established that every organization is a data company, facing an environment where a single ransomware attack can trigger crises across Legal, IT, and Communications. With regulatory settlements routinely reaching into the tens and hundreds of millions of dollars, relying on fragmented, after-the-fact strategies is no longer a sustainable strategy. It’s a costly–potentially bet the business–gamble.
Yet, many large enterprises still treat core disciplines like privacy, e-discovery, incident response as isolated domains. They often lack the accurate, up-to-date data map needed to connect these dots. This reactive mindset is the fatal flaw. It creates “The Fragmentation Tax”: the steep, unpredictable cost your organization pays in duplicated effort, missed signals, and ultimately, severe financial and reputational harm.
For executive leadership at a Fortune 500 company, the consequences of this fragmentation are most immediately and painfully felt by the roles responsible for governance, legal defense, and investor confidence: the Chief Legal Officer (CLO) and the Chief Executive Officer (CEO).
