Companies demonstrating advanced cybersecurity performance generate a shareholder return that is 372% higher than their peers with basic cybersecurity performance, according to a new report from Diligent and Bitsight.
Boards under pressure to fortify cyber oversight
The escalation in the frequency and severity of cyber incidents has positioned cyber risk as one of the foremost challenges confronting boards. With cyber threats becoming increasingly sophisticated and pervasive, boards are under pressure to effectively address cybersecurity risks to safeguard their organizations’ interests.
With projected financial losses from data breaches estimated to reach approximately USD 10.5 trillion by 2025, and new pressure from regulators like the SEC, the oversight role of the board becomes even more crucial. Boards are prioritizing robust oversight mechanisms to mitigate cyber risk and protect their organizations’ financial health and reputation.
However, the approaches boards take to address cyber risk vary, prompting questions about the effectiveness of different board governance structures and strategies.
The report also reveals that highly regulated industries,…
