Adrian Johnson
TLDR:
- Global expenditure on cybersecurity reached $188 billion in 2023 and is projected to increase to nearly $215 billion in 2024.
- Increased spending on cybersecurity has not correlated to decreased cybersecurity breaches.
Boards must navigate the fine line between strategic oversight and hands-on management of cybersecurity and consumer data. The surge in cybersecurity breaches, resulting from both external and internal threats, has prompted increased legislation, regulations, and litigation. In response, companies must involve upper management and board members in cybersecurity oversight. The SEC and various states have issued regulations requiring board involvement in cybersecurity risk management. While the potential for individual director and officer liability exists in the event of a data breach, legal standards and court rulings provide some protection for corporate management.
As new regulations continue to shape the cybersecurity landscape, company boards must prioritize a robust cybersecurity program that involves the boardroom. Key elements include identifying cybersecurity experts within upper management, receiving regular briefings, staying informed on cybersecurity standards, and revising insurance portfolios to manage cybersecurity risks for both the company and its directors and officers.
