In mid-December 2017, the National Association of Corporate Directors (NACD) published its “2018 Governance Outlook: Projections on Emerging Board Matters” report, designed to highlight key areas of focus for board directors in 2018. It also offered recommendations for improving enterprise risks, including a section dedicated to cyber risks.
Four Key Takeaways From the NACD ‘s ‘2018 Governance Outlook’
The report — and the underlying NACD Public Company Governance Survey — found that only 49 percent of board directors are confident about management’s ability to effectively handle cyber risks. In the same vein, since there are increasing calls for cyber risks to be integrated within the enterprise risk management (ERM) system, 58 percent said it was important or very important for their boards to improve oversight of risk management in the coming year.
When it comes to cyber risks, there is a lot of room for improvement: Only 12 percent of respondents in the public governance survey said their boards had a “high level of knowledge” of cyber risks. With those numbers in mind, below are four takeaways for board directors from the report:
