Cybersecurity Risk in an Organization
In most organizations, cybersecurity is a shared responsibility across business units and departments. This requires senior leadership to understand the cyber-risk context, and how it relates to the overall strategic objectives and operations of the organization. It also requires that senior leaders be able to assess the risk of cyber-attacks and develop a strategy to minimize those risks.
It is crucial for senior leaders to make cybersecurity risk a priority and to ensure that their management teams are managing the risks appropriately and reporting on the results of those efforts. This includes making sure that a company’s IT department or CISO is responsible for the day-to-day implementation, reporting and management of the cybersecurity program.
This can be done by defining a strategic priority and ensuring that the board is aware of that priority. Additionally, a company’s senior leadership team should have adequate access to cybersecurity experts and discussions about cybersecurity should be given regular and adequate time on the board meeting agenda.
Who is Responsible for Cybersecurity Risk in an Organization?
The board must be familiar with the risks associated with cybersecurity, which can range from reputational damage and loss of consumer confidence to significant financial losses and business disruption. It is essential that the board understands how a cybersecurity breach might affect its financial results, and how it would impact the board’s governance and oversight responsibilities.
Directors should also be familiar with the legal implications of cybersecurity, which may vary depending on their companies’ circumstances and industry. This should include an understanding of the relevant statutes, regulations and guidelines.
In addition, boards should have access to cybersecurity experts who can provide an overview of the latest cybersecurity trends and regulatory developments in their industries. This will help them stay abreast of emerging concerns, and can also be a good way to identify possible areas for improvement in the corporate approach to cybersecurity.
Boards and their audit committees should be aware of the risk and potential effects of cyber-attacks, which may include data breaches that are a direct result of malicious activity, or that could be caused by human error. They should also be aware of the company’s cybersecurity program and its current performance, including the number of employees who are trained in cyber-security awareness sessions.
Cybersecurity committees should regularly communicate with each other on the company’s cybersecurity risk status, and they should report on their plans for breach rehearsals, a process that allows IT to test and practice response procedures if a data breach occurs. They should also be able to share what they learned from these rehearsals, and how it can benefit the board and company in the future.
It is critical that boards and their audit committees stay up-to-date on cybersecurity issues, which can be a complex subject and often involve technical terms that are difficult to understand. This is because the cyber-risk landscape is evolving, and new regulations and mandates may be forming in the future.
Boards should establish cyber-risk committees that have the authority to take on the role of protecting the company from cyber-attacks. The committee should work closely with the IT department and other management to develop a strategy for cybersecurity. This should also include setting up requirements for various roles and creating policies to be followed by managers in relation to cybersecurity matters.
