Cyber Risk Prioritization: 5 Ways to Engage and Inform Your Board
The cybersecurity landscape has shifted dramatically, becoming a common topic of discussion in boardrooms globally, making Cyber Risk Prioritization a key focus. Despite budget cuts in other areas, companies are allocating more resources to cybersecurity, with global spending projected to skyrocket to $174.7 billion by 2024. This increased investment underscores the gravity and complexity of modern cyber threats.
Cybercrime has evolved from simple credit card fraud or digital vandalism to highly sophisticated data breaches and ransomware attacks.
These incidents profoundly impact businesses, potentially destroying reputations, eroding customer trust, damaging partner relationships, and incurring significant financial losses. Therefore, boards need to perceive cybersecurity as a periodic concern and a constant risk requiring ongoing management.
Make it Clear How Big the Problem is
Cybersecurity transcends the realm of fixing and securing systems. It represents a core operational component and extends beyond the purview of IT departments. Recent attacks, such as the one on Danish 7-Eleven stores, underscore how a single cyberattack can paralyze a business.
New threats emerge daily. Misinterpretation of policies can lead to insider threats or leaks of confidential information. Collaborating with untrustworthy partners can inadvertently transform you into a hacker’s target. The sheer volume and speed of these threats are overwhelming for most businesses. While boards recognize the correlation between security and brand integrity and customer trust, they may underestimate the severity and dynamic nature of modern cybercrime.
Talk About Risks, Not Threats
When discussing cybersecurity with board members, the conversation should extend beyond merely outlining threats and vulnerabilities. Emphasize the inherent risks that require management and elaborate on how enhanced cybersecurity can bolster business resilience, increase customer trust, and boost productivity. These are the aspects that resonate with board members.
While threat analysis tools and reports provide valuable insights, they may not accurately portray a company’s security posture. The CISO plays a critical role in interpreting and presenting this data in a business-centric context.
Include a Cybersecurity Expert on the Board
It is highly beneficial for businesses to have a board member proficient in security matters, or at least someone who has effectively navigated major cyber incidents. This individual can ensure that security remains a focal point during board meetings and assist other members in comprehending the risks more thoroughly.
Don’t Rely Too Much on Cyber Insurance
While cyber insurance can defray expenses associated with cyber incidents, it’s not a panacea. It can’t offset damage to your reputation or the expenditure on new tools to thwart future attacks.
It can, however, help with:
- legal fee
- data recovery
- system repair
- crisis communications post-breach
In some cases, it might be more cost-effective to meet a ransom demand than deal with the repercussions of an attack. Cyber insurance can instil a sense of confidence in companies, but it can’t prevent brand damage.
Make Decision-Making More Flexible
Cybersecurity is changing fast. Companies need to manage their security programs in ways that can keep up. That means being flexible and innovative and having a board that understands the risks and can make proactive security decisions.
Defending your company against cyber threats always involves balancing costs with risks. But given today’s threats, your company needs to be able to make decisions more quickly and strategically. That means your board needs to be more flexible when making decisions.
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Closing Thoughts
Strong cybersecurity makes or break a business. For this reason, boards must understand and actively manage cyber risks, rather than merely react to threats.
Having a cybersecurity expert on the board and avoiding over-reliance on cyber insurance are key steps in this process. Agility in decision-making can also better position companies to respond effectively to emerging cyber threats.
Ultimately, a board that is well-informed and proactive about cybersecurity can significantly enhance the resilience and competitiveness of a business in the digital age.
