The Importance of Cyber Risk Awareness
One certainty about cyber risk is that threats are dynamic and constantly evolving. Recovering from a cyber breach’s financial, reputational and structural damage can be difficult. For boards, vigilance is critical.
Today’s cybersecurity landscape is one where challenges are rapidly multiplying and, without the right tools, it can be nearly impossible to keep up. Regardless of industry or location, cybersecurity is a critical business issue and will be a crucial focus for boards in the months and years ahead.
Gartner’s recent 2020 Board of Directors survey predicts that some 40% of boards will have a dedicated cybersecurity committee by 2025 (up from less than 10% today). This increase is a clear indicator of high-level organisational changes that are already underway, accelerated by “the greater risk created by the expanded digital footprint of organisations during the [COVID-19] pandemic.”
As organisations continue on the path to a digitally-led future, boards must ensure the transition goes as smoothly as possible. They must be aware of any vulnerabilities – from potential data breaches to third-party partnerships – that may present risks if pre-emptive measures are not in place.
The correct approach to managing cyber risk requires a better understanding of several factors, including:
- Digital transformation, entailing a shift toward technology-driven operations, and a simultaneous movement away from manual, paper-based processes.
- A marked increase in remote working, highlighting secure collaboration and communication’s importance in a virtual environment.
- Increasing scrutiny from investors, higher expectations from consumers, and a growing number of stakeholder considerations.
- A regulatory focus on third-party monitoring.
- The impact of reputational risk and its associated financial ramifications.
Ultimately, staying acutely aware of cyber risks is one of the most pressing issues for boards today.
“In the 21st century, there is not a single major business decision that does not include cybersecurity considerations. Cybersecurity needs to be woven into the entire process, from R&D through manufacturing through public relations. That’s the message about cybersecurity: We’re all in this together.”Larry Clinton
President, Internet Security Alliance
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