Cybersecurity and governance

Cybersecurity and governance: a guide to integrating two of the most important topics on a director’s priority list. We live in a world today of fast-paced technological change, which can bring huge benefits and transform businesses. However, it also carries tremendous risk, which is why cybersecurity is an essential boardroom concern. Like any other big issue, though, organisations can put policies and processes in place to minimise that risk. In other words - cyber governance. It involves identifying, assessing, and mitigating cyber risks and protecting the privacy of sensitive data. You also need to ensure you adhere to regulations on the issue. It combines to form a vast digital responsibility, no matter what sector you’re in. This article will discuss what you need to know to improve your governance around these issues and stay one step ahead. What businesses should be worried about cybersecurity? Any business - it’s the simple answer you need to hear, even if you might not want to listen to it. The resilience of digital infrastructure is a core defining element of a company’s longevity, which applies to anything from startups to big global brands. Cyber threats are changing; attacks are increasing, getting more sophisticated each time. It all demonstrates that where cybersecurity might have been a handy extra for companies in the past, now it’s a “must have.” What is cyber governance? While cyber governance considers cybersecurity, the two terms are not the same. Cyber governance is a broader term which considers all areas of cyber risk, not just security. It also includes any procedures you put in place to mitigate such risk. The above forms the basis of a cyber framework, which is fully integrated into your mode of operation. It shows how your business will reach its financial goals while having the robust rules it needs to adequately manage the tech it depends on. When you develop a framework like this, you should align it with the organisation’s goals, objectives, stakeholder expectations and regulatory requirements. The board can, and should, know all of this already - clear enough to be able to integrate any cyber framework into the bedrock of the organisation’s corporate culture. Here, awareness and accountability are highlighted and valued the most. Employees can feel confident about being able to identify and report threats. All stakeholders can rest assured that cyber laws are being followed. What is the impact of cybersecurity issues? Cybersecurity risk can strike at the heart of a business. One or two wrong moves, and you could be under severe pressure from multiple stakeholder groups. Unaddressed cybersecurity risks can have several knock-on effects: Serious reputational damage Compromised or lost data crucial to an organisation’s daily operations Unavailability of vital software used for day-to-day operations Loss of custom Loss of investment Serious financial harm The trouble with cybersecurity is that the source of risk is constantly evolving. Technology gets more sophisticated by the year, and many companies struggle to stay abreast without proper expertise. Take the last four years, for example; many businesses struggled to move online during the pandemic, and only after adapting to this change did AI come along, forcing another major re-think. Every step in the drive to adapt to technology carries unique risks that the board must address. It’s not enough to simply “leave it to the IT crowd”; there needs to be proper knowledge and experience at the governance level so directors can make informed decisions. Management or leadership? This is a common problem for businesses, especially for directors, who might be tempted to think that they can leave the heavy lifting in cybersecurity to dedicated IT employees. But remember: cybersecurity management and cybersecurity governance are different responsibilities. They overlap a lot, but while cybersecurity management can be more tactical in its approach, cybersecurity governance takes a longer-term and more strategic view. It requires strong commitment and leadership from the qualified board and senior management, who can collectively visualise how the business will handle its cyber risks. The board should also establish a solid line of communication with IT/digital employees to ensure a rounded approach. This link should constantly assess new risks and update their plans accordingly. Required resources should be factored in, as should legal standards. It’s a combined approach that makes this work best. What steps can you take? As a board, consider the following to implement effective cybersecurity governance in your organisation: Establish a baseline for where your organisation is currently regarding cybersecurity Develop a governance structure by appointing committees and defining responsibilities Engage stakeholders through effective communication Continue developing and adapting through regular reviews Discover how the latest tech advancements, such as AI and other automation, can help you identify and stay on top of your cyber risk. What are some common obstacles to achieving this? There are many obstacles to good cybersecurity leadership at the board level: Lack of urgency among those who aren’t well-versed in cyber issues Lack of available budget Cybersecurity gets bumped down the list of boardroom priorities as other issues take charge Gaps in the governance talent pool, meaning you’ll struggle to find the cyber expert you’re looking for on your board. But there are ways around these problems: Support a culture of long-term appreciation for cybersecurity so it gets the attention (and money) it deserves. Look into AI and how it can help manage risk rather than create it Network within digital industries to find suitable candidates for a governance role. Ensure all your employees are involved in the company’s cybersecurity culture as much as possible. How does cybersecurity fit into ESG frameworks? You wouldn’t necessarily think of ESG (environment, social and governance) and cybersecurity together at first glance. However, significant overlap exists, and both areas are subject to increasing regulatory compliance. The fundamental connection is that companies increasingly digitalise their operations while making their strategies more ESG-sensitive. Each can help the other, and a fault in one could seriously harm the other, so it’s better to consider them together as part of a well-thought-out business plan.

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