It is well understood by now that cyber security is a concern for every organization and that it is an issue on which every company’s board should be focused. But what specifically should boards of directors be worried about and what questions should they be asking? In the following guest post, John Reed Stark and David R. Fontaine take a look at the ten cybersecurity concerns on which every board of directors should be focused. John Reed Stark is President of John Reed Stark Consulting LLC, a data breach response and digital compliance firm. David Fontaine is Executive Vice President, Chief Legal & Administrative Officer and Corporate Secretary of Altegrity, a privately held company that among other entities, owns Kroll’s data breach response services. The authors’ complete biographies appear at the end of the post. This article was previously published on CybersecurityDocket.com, an online global cybersecurity and incident response report, and a division of Docket Media.
I would like to thank the authors’ for their willingness to publish their article on this site. I welcome guest posts from responsible authors on topics of interest to this blog’s readers. Please contact me directly if you would like to submit a guest post. The authors’ guest post follows.
Every board now knows its company will fall victim to a cyber-attack, and even worse, that the board will need to clean up the mess and superintend the fallout.
Yet cyber-attacks can be extraordinarily complicated and, once identified, demand a host of costly responses. These include digital forensic preservation and investigation, notification of a broad range of third parties and other constituencies, fulfillment of state and federal compliance obligations, potential litigation, engagement with law enforcement, the provision of credit monitoring, crisis management, a communications plan – and the list goes on.
And besides the more predictable workflow, a company is exposed to other even more intangible costs as well, including temporary or even permanent reputational and brand damage; loss of productivity; extended management drag; and a negative impact on employee morale and overall business performance.
So what is the role of a board of directors amid all of this complex and bet-the-company workflow? Corporate directors clearly have a fiduciary duty to understand and oversee cybersecurity, but there is no need for board members (many of whom have limited IT experience) to panic.
Below we compile a list of ten cybersecurity considerations that provide a solid bedrock of inquiry for corporate directors who want to take their cybersecurity oversight and supervision responsibilities seriously. This “cybersecurity top ten list” provides the requisite strategical framework for boards of directors to engage in an intelligent, thoughtful and appropriate supervision of a company’s cybersecurity risks.
Continue Reading Guest Post: Ten Cybersecurity Concerns for Every Board of Directors