What does the term "due care" imply for senior management?

Due care refers to the obligation that senior management has to take reasonable steps to protect the organization's assets, which includes both physical and intangible assets like data and intellectual property. This concept is rooted in the idea that management must be proactive in establishing and enforcing policies and practices that safeguard the organization against risks and vulnerabilities.

When management acts with due care, they ensure that the measures taken to protect the organization are not only necessary but also sufficient, given the prevailing circumstances and the potential risks. This includes anticipating potential threats and taking appropriate action to minimize risks, which would include investing in security measures, training employees, and maintaining an overall culture of security within the organization.

In this context, due care is a legal and ethical standard that holds management accountable for their actions in risk management and asset protection. This means that if a breach occurs or an asset is compromised, management may be scrutinized for whether they exercised adequate care in their protective measures.