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The report underscores how the surge in sophisticated cyberthreats – including ransomware – in recent years has challenged traditional corporate governance. Cybersecurity and business interruption are now considered the top corporate risks, according to research from Allianz Group.
Data security is a priority issue at the most senior levels of U.S. corporations. Business leaders are now facing requirements to rapidly share intelligence with industry partners while remaining upfront with customers and transparent with investors and government regulators.
“Overseeing cyber risk is incredibly challenging,” Dottie Schindlinger, executive director of Diligent Institute, said via email. “With the global cost of cybercrime expected to reach $10.5 trillion by 2025, cybersecurity has become a board-level imperative.” Cybersecurity Ventures originally forecast the total cost of cybercrime by 2025.
However, cyber risk oversight and the technical concepts and vocabulary that goes with it, can feel foreign to board directors, Schindlinger said.
Less than 9% of an average board has technical expertise, research from Diligent Institute found. Even worse, half of the companies surveyed have no technical expertise on the board at all.
“The role of the board is to monitor the long-term health of the company, so when directors lack fluency in the language of cyber risk, they are ill equipped to oversee one of the most severe areas of enterprise risk facing their organizations,” Schindlinger said.
Clarification: This article has been updated to include citation information for data discussed by Dottie Schindlinger.
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Enterprise cybersecurity is navigating market turmoil and vendor consolidation. Here’s what experts expect to happen to the industry in 2023.
CISOs are up against talent shortages and retention concerns amid an increasingly sophisticated threat landscape.
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