CEOs and their boards must now own cybersecurity. CEOs need to establish the right culture to protect against cyber risk. Boards need to establish cyber as a material business financial risk and need to better understand the potential of its material impact on business.
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The United States Securities and Exchange Commission (SEC) proposed new rules on cyber-risk management, strategy, governance, and incident disclosure are coming. Public disclosure of director experience in cybersecurity and risk oversight practices will go into effect shortly. A plethora of data indicates that most boards are not ready to meet these new standards.
New cyber reporting will require a deeper focus on material business, operational and financial impacts. According to Cybersecurity Ventures, cybercrime damages are expected to reach $8 trillion this year. As a result, boards will need to substantively address cyber investments and the risks of business interruption, remediation costs, lost revenue, litigation, the erosion of competitiveness, and long-term shareholder value.
Cyber risk reporting and business resilience planning must now become a key component of effective board governance. While it’s possible to add a cyber expert or technology expert to your board, having an independent voice now, providing on-demand support to expand your board’s cyber expertise is both smart and timely.
Here are a few of the many ways to effectively expand your board cybersecurity expertise and ownership. Make sure that you understand the new SEC and investor community expectations and what regulatory oversight support is needed. Make sure that your board understands the latest trends and cyber risk factors as well as your responsibilities as a board member. Consider finding experts to support your board in exercising their cyber risk oversight responsibilities. Make sure that ..
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