Boards of directors have a new source of advice on how to manage cyber risk for the firms they oversee.
It comes from the World Economic Forum, which released a report called Principles for Board Governance of Cyber Risk that outlines six principles boards should follow to make companies more resilient to cyber-attacks.
“The board needs to understand cyber risk, and its role in governing this threat, to perform its oversight function effectively,” the report says. “It continues to be important for members of the board of directors and industry professionals to increase their knowledge of how to address cybersecurity within their organizations.
“As with any major enterprise issue, it is important for the board of directors and leadership to set the tone at the top and define how their organizations must address cybersecurity.”
The six principles are:
- Cybersecurity is a business enabler
In brief, cybersecurity is more than just an IT issue. Effective organizational cybersecurity directly contributes to both value preservation and new opportunities to create value for the enterprise. So the board has to hardwire cyber-risk considerations into key operational and…
