The Cybersecurity Guide to Governance, Risk, and Compliance

CHAPTER 6Cybersecurity and the Board of Directors

“Embracing Cybersecurity is not a burden; it’s a strategic advantage. By investing in our digital defenses, the board enhances our competitive edge and paves the way for innovation and growth.”

The corporate board of directors has a pivotal role in managing cybersecurity within an organization. Their responsibilities encompass understanding the perspectives of the board and cybersecurity executives and addressing their expectations, challenges, and strategies for managing cyber risks. Effective communication strategies and recommendations for reporting to the board are also crucial aspects of their role. Standards such as those from the FFIEC shed light on the extent of board involvement required in cybersecurity. Integrating cybersecurity deeply into the corporate culture is essential to ensure a security‐focused mindset across all levels. Legal and regulatory considerations also need to be acknowledged. The board's involvement in cybersecurity will become even more significant as the digital landscape continues to evolve.

THE CRITICAL ROLE OF THE BOARD IN CYBERSECURITY

The rapidly evolving cyber landscape has transformed cybersecurity from a technical issue to a critical board‐level concern. The potential consequences of cyber risks on corporate governance are far‐reaching and can severely impact a company's reputation, operational efficiency, and financial health. In this context, the role of the board of directors in ...