Equifax, a credit-reporting agency, disclosed that it had suffered a massive data breach affecting as many as 143 million people. Hackers had gained unauthorized access to sensitive personal data-Social Security numbers, birth dates, and home addresses-for nearly half of the United States. The company also faced multiple federal investigations including hearings at the U.S. Congress over its handling of the hack and reports that its executives had sold an unusual amount of stock before the breach was publicly disclosed. Effective corporate governance requires Equifax's board of directors to

Question

Equifax, a credit-reporting agency, disclosed that it had suffered a massive data breach affecting as many as 143 million people. Hackers had gained unauthorized access to sensitive personal data-Social Security numbers, birth dates, and home addresses-for nearly half of the United States. The company also faced multiple federal investigations including hearings at the U.S. Congress over its handling of the hack and reports that its executives had sold an unusual amount of stock before the breach was publicly disclosed. Effective corporate governance requires Equifax's board of directors to

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Effective corporate governance requires the board of directors to strengthen its oversight of the company's strategic direction, evaluate senior executives' skills, handle executive compensation, and oversee financial reporting practices. In the case of Equifax, the board of directors failed to properly oversee the handling of the data breach and the sale of stock by executives before disclosing the breach. Therefore, a stronger focus on oversight and evaluation of senior executive actions is necessary to prevent future incidents. Options A, B, D, and E do not address the specific issues that Equifax is facing.

Equifax, a Credit-Reporting Agency, Disclosed That It Had Suffered a Massive