Why Cyber Risk Should be a Priority for Every Boardroom
Cyber security is a top priority for many organisations, but the task can seem daunting. It’s now possible to make your business more secure with less risk to be hacked into, thanks not only to modern technology and resources like analytics tools—but also by making certain employees aware they have responsibility over this area too! Cyber security is a major concern for many organisations, as the COVID-19 pandemic has highlighted how connectivity can be used by hackers to access sensitive information. In order to protect yourself from cyber risk, it's important that you digitise all aspects of your business and connect with people effectively through digital channels like email or social media platforms, so they're aware of any updates concerning their work place conditions. The need for cyber security has never been more pressing as it is now, as companies rely on digital connectivity and process large quantities data which could be attractive to criminals.
Board members should understand their own exposure to cyber riskThe message to directors and officers is clear - cyber risk will be a board level priority. If you do not have an understanding of your own exposure, it's time for some self-reflection! The current legal climate means that boards can be held liable if they fail in their duties to shareholders. They must take action quickly and responsibly when there's a cyber attack or data insurance, because it could lead to them being sued for damages by affected parties - including customers whose private information may have been compromised during these events! Cyber attacks are becoming more and more frequent, but they can be prevented with some careful planning. Senior management should always remain aware of what's going on in their company even when it doesn't directly affect them, because cyber-criminals will try any trick possible to get into you!
5 ways to build and improve cyber resilience
- Treat cyber risk like other financial and operational risks. Ensure it is high on the boardroom agenda, and that it is budgeted for and appropriately resourced.
- Carry out regular, systematic assessments of cyber risk across all critical processes, in order to understand your exposures and the potential impacts of different cyber incidents.
- Be clear on roles and responsibilities, and establish clear channels for managing and escalating cyber incidents.
- Ensure senior managers and board members are appropriately trained in cyber security and cyber risk
- Don’t treat cyber insurance as a silver bullet. Insurance can be invaluable in helping organisations recover quickly after a cyber incident, but it will not stop incidents happening in the first place, nor will it address the root causes of such incidents. Organisations should focus on improving their cyber maturity, rather than relying solely on cyber insurance.