Ransomware and its effect on business operations jumped into the forefront of cyber risk-related debate in the year 2021. According to the World Economic Forum reports a 435 percent increase in ransomware in the period from 2019 to 20201 and its forecast for 20222 shows ransomware as the leading threat that businesses are the most worried about. Attackers have discovered that their most lucrative path is the disruption they could cause by taking organisations, data, economies and entire societies hostage. In addition, they are not confined to just one target. They are now taking hostages across a variety of and interconnected target ecosystems.
The threat of cyber security continues to grow faster than the capability of many organisations and government agencies to safeguard themselves. The threats go well beyond the system that is in danger of being breached. They pose an attack on our daily lives. A important finding of the Accenture 2021 State Of Cybersecurity Resilience report shows the fact that 81% more than 5,000 respondents think they are “staying ahead of attackers is a constant battle and the cost is unsustainable.” The report also reveals that the number of instances of attacks that were successful per organisation was up from last year by 31%. It appears that attacks have been winning.
With the increasing levels of systemic cyber-related risk facing businesses across the globe improving the boardroom of corporate companies as a vital cybersecurity risk management capability is much overdue. Cyber-related threats can cause an unimaginable amount of destruction, which increases the possibility that criminals are paid or achieve success whatever motivations they have. Colonial Pipeline’s ransomware hackers caused a massive impact by shutting the country’s biggest fuel supply pipeline because of a ransomware attack. Additionally it is worth noting that the SolarWinds breach is an instance of a systematic attack strategy that had a negative impact on hundreds of thousands of businesses in addition to the one where the incident occurred.
Inspiring self-regulation through self-regulation
Fortunately, boardrooms do not need to wait around for governments to pressure them to improve their cyber risk management. Self-regulating by adopting best methods that some boards have already adopted begins with having cyber experts within the boardroom. Many companies, like FedEx, GM, AIG, Hasbro and some others have already taken this step.
Here are a few ways that having cyber-savvy in the boardroom can help strengthen security measures against cyberattacks:
The easier way to deal with cyber and digital risk:
Beyond bringing director-level cyber-expertise on the board there’s an increasing collection of self-regulatory guidance that reflect the most current guidelines and practices for governing and managing the complicated issues that come with cyber and digital risk. These guidelines are also a way of redesigning the structure of the boardroom, and also defining the boundaries of cyber and digital risk supervision that the boardroom has and how the board communicates with management regarding these issues.
The company benefits from boards that are digitally smart:
The economic benefits of having tech-savvy board members have been found as significant to numerous US-listed companies. The Massachusetts Institute of Technology’s (MIT’s) Center for Information Systems Research has identified the financial performance effects of companies that have “digitally savvy” boardrooms. The results included an increase of 38% in revenue for three consecutive years, 34% greater growth in the return for assets, 34 percent more growth in market capitalization and greater profit margins of 17. The results were evident when the board was able to have the critical amount of at minimum three highly technologically-savvy corporate directors.5
Self-regulation is cost-effective than fines for regulatory violations:
The growing quantity of business and economic value generated by digital systems requires protection. As regulations on cyberspace increase, penalties will only get more severe when companies that do not or do not follow their requirements are penalised. As is the case in numerous areas self-regulation could significantly aid in reducing the real level of cyber risk . It’s also substantially less costly.
Prilient Technologies is a leading provider of complete cybersecurity services which include the most advanced cyber defence applications, cybersecurity solutions for applied use and security operations that are managed. We offer security innovation along with global reach and worldwide delivery capability , thanks to our global network that includes Advanced Technology and Intelligent Operations centres. With the help of our highly trained professionals, we allow our customers to develop their ideas in a safe manner, increase cyber resilience, and expand with confidence.
Conclusion:
Regulators have noticed and are pushing ahead by imposing additional regulations and increasing fines against private companies, which include stricter privacy protections, no cyber security controls, and a global collection of compulsory cyber-related incident reporting. It is still a weakness that organizations and their regulators aren’t paying enough attention to — the boardroom. The boardroom is a crucial control tool in the fight against cybersecurity, but for most organizations they are largely undeveloped. As of now, there are no regulations enacted by regulators that force corporations to manage cybersecurity more effectively in any nation all over the world.
