Cybersecurity oversight requires improvement, concludes survey assessment
In the rapidly evolving digital landscape, the Securities and Exchange Commission has introduced new cyber disclosure rules, underscoring the growing importance of cybersecurity in business operations. However, a lack of cyber awareness can lead to insufficient disclosures, potentially leading to investigations and lawsuits, as highlighted by cybersecurity expert, Rob Clyde.
Clyde compares this to board members being able to read financial statements and ask good financial questions, regardless of their level of financial background. In the same vein, CISOs need to communicate cyber risks in terms that board members can easily understand, to foster informed oversight and strategic decision-making.
The risk of cyber threats targeting businesses is increasing, and the potential penalties for cyber incidents are growing. CISOs play a crucial role in improving board preparedness by framing cyber risks as business risks and fostering a strong partnership with the board and C-suite.
To effectively communicate cyber risks, CISOs should:
- Translate technical cybersecurity information into clear, concise language focused on business impact.
- Provide regular, actionable cybersecurity board reports that include updates on security posture, risk outlook, key initiatives, and strategic recommendations.
- Highlight how cybersecurity supports enterprise resilience and business continuity, not just as a compliance exercise.
- Emphasize measurable outcomes and quantifiable cyber risk metrics to help the board monitor and guide investment in cybersecurity.
- Conduct continuous engagement beyond reporting by collaborating with other leaders to simplify and contextualize the company's cyber posture for the board.
- Advocate for shared responsibility of cybersecurity across the organization, ensuring that board-level oversight encourages cross-functional cooperation and proactive resilience planning.
CISOs must also be adept at explaining their advice on cyber-related risks to boards and openly discussing their partnership with business unit leaders. A joint survey found that nearly 60% of respondents did not receive sufficient training on cyber resilience in the last 12 months, highlighting the need for continuous education and awareness.
In summary, CISOs improve board preparedness by bridging the gap between security experts and business leaders through strategic communication, measurable metrics, and fostering resilience as a core business priority. This approach builds board trust and enables more effective cyber risk oversight.
- To ensure effective risk management and mitigate potential lawsuits, CISOs must communicate cybersecurity risks clearly and concisely, translating technical information into business impact terms for board members.
- In order to foster informed oversight and strategic decision-making, CISOs should provide regular, actionable cybersecurity reports to board members, highlighting cybersecurity's role in enterprise resilience and business continuity, while emphasizing quantifiable cyber risk metrics and encouraging cross-functional cooperation.
