Cybersecurity risk is a board issue
Digital business has become the default way of operating a company today. This transformation means that when a board of directors ignores or downplays the advantages and risks associated with technology, it risks being out of touch with the actual state of its industry and operations. Chief Executive recently named cyber risk the most prominent blind spot in terms of board member knowledge. (Sep. 21, Myatt)
A lack of board members with a security background could have serious repercussions for businesses today, as directors may not even know when they are behind the curve on readiness or threat detection. While current executives and board members may not have much security knowledge, they have clear motives to either expand their scope or bring in new directors specifically to inform them.
When a breach occurs, the damage to the company can encompass higher IT bills, regulatory penalties and a lessened image. A publicly traded company that suffers a hack may feel an immediate chill in its stock prices. To maintain their position as responsible defenders of the organization's value, board members should prepare. Risk-based governance committees can help organizations learn what they've been missing.
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