Cyber-risk questions Boards should be asking

If you are a corporate officer, cybersecurity plays a critical role in protecting your company’s financial, operational, and reputational interests. Boards have a legal obligation to protect the assets of the company–which includes digital assets–so it’s essential to have a clear understanding of the cyber risks an organization faces to make informed decisions on how best to manage and mitigate those risks.

Legal and regulatory requirements

There are many laws and regulations that require organizations to implement cybersecurity measures to protect sensitive data. Failure to comply can result in legal and financial penalties, damage to the company’s reputation, and loss of customer trust. 

Financial risks

Cyber-attacks can cause significant financial losses: direct costs such as legal fees, IT support and remediation efforts, as well as indirect costs such as lost productivity, revenue, and damage to the brand and reputation.

Reputation risks

Cyber-attacks can damage a company’s reputation and erode customer trust. This can lead to lost business, decreased sales, and difficulty attracting new customers.

Operational risks

A cyber-attack can disrupt operations, causing downtime, data loss, and damage to critical systems. This can lead to a loss of productivity and revenue as well as brand and reputation.

Strategic risks

Cyber-attacks can undermine strategic goals such as growth, expansion, and competitive advantage. In today’s digital world, companies that are not adequately prepared for cyber threats may struggle to compete with those that are.

10 Questions to Ask

So, what questions should a Board be asking? The questions below are a good place to start and can help assess an organization’s cybersecurity posture, identify potential gaps in the security strategy, and ensure that cybersecurity risks are being appropriately managed.

1. What is our company’s current cybersecurity risk posture, and how do we determine it?
2. What are the policies and procedures in place to protect our organization’s critical assets and are they being effectively implemented?
3. What type of cybersecurity training do employees receive, and how do we ensure that all employees are aware of the importance of cybersecurity?
4. What is our organization’s approach to data encryption, network segmentation, and access controls?
5. How are we monitoring and responding to suspicious network activity or potential cyber threats?
6. What is our incident response plan and when was it last tested or updated?
7. What third-party vendors have access to our systems, and what are the policies in place to ensure they meet our security requirements?
8. How do we endure compliance with relevant cybersecurity regulations and standards such as HIPAA, GDPR, or PCI DSS?
9. How often do we conduct cybersecurity risk assessments and what actions are taken to address identified vulnerabilities?
10. What are our cybersecurity insurance coverage and claims handling processes?

Managing cybersecurity risk has become a fundamental part of corporate governance, strategic planning, and protecting a company’s assets. As such, it is the Board’s responsibility to oversee the company’s management of cybersecurity risks and be aware of its cybersecurity posture and preparedness. If you need further visibility into your cybersecurity posture, DataEndure can help.