Target CEO Steps Down Following Data Breach

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May 5 (Bloomberg) -- Bloomberg Businessweek's Michael Riley discusses Target XEO Gregg Steinhafel stepping down as chairman, president and CEO. Riley speaks on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Leaving?

It was one of -- i was one of four reporters that work on it for several weeks.

On one level, it's a surprise.

It's hard to come up with a data breach, even a large one, that has gone all the way up to the ceo in terms of the cost of jobs.

Target had already fired their chief information officer.

That is a typical move to try to deflect any of the problems.

You can just stop there.

It seems to indicate that there may be more to come.

There are a couple of investigations the results of which are not yet public.

There is an investigation that target and its consultants are doing and another one is being handled by auditors who are looking to see if the security issues that target had contributed to the loss and if so, they will look to try to shift as much liability as they can to target.

It could be the results of those investigations meant that the ceo had to go as well.

This may well have been the biggest retail breach in history.

What do you imagine the continued fallout will be?

There's a reasonable expectation and an impact by people unwilling to handle -- hand over their credit cards to target.

I have a second thought about it.

I think that lasting impact really hurts.

It has been a struggling business for a while.

I think this is a big wake-up call.

Today is the day that every ceo in the world will be thinking about the issues of cyber security in a different way.

It's the same way the it guy used to be down the hall and now the ceo has to take cyber security as an issue that will keep them in their jobs or force them to lose their jobs.

How confident are you that target now has its ducks in a row?

Would they be more prepared if this happened again?

Time will tell.

They have learned at least one lesson which is you don't skimp on security.

They are already in the process of upgrading all of their payment systems to chip and pin system is what europe uses and is more secure.

The problem with a system like that is that the retailer cannot change the game.

The cards that the banks issue have to have the technology in them.

Target is putting in the advance system in and has to wait for everybody to catch up.

We will have to wait and see.

Don't hold your breath or something like that.

It has taken years for the credit card history to get to where it is now.

Even though the rest of the world is operating differently.

The credit card business is important to target and it's worth noting this company is had struggles.

They have gone into canada recently and are losing money hand over fist there.

There are expectations it will lose nearly two dollars for every four dollars of revenue they get which is over $100 million in revenue.

They've got really big issues.

As difficult as did just as it is mrs., you cannot screw up and cyber security.

What do you imagine that other businesses have learned?

We can't say that target would be ready for this to happen again but what about everybody else?>? not just every other retailer but every other large corporation in the u.s. is looking at this and the ceo's especially is taking note of the impact this can have not just on the brand or the business whichever one has been concerned about on their jobs.

This is a watershed when this goes all the way up to the top.

It indicates that cyber security has gotten to a different level in terms of the impact it can have a company.

Michael riley, the story will continue to unfold.

Thank you both.

This text has been automatically generated. It may not be 100% accurate.

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