During our research, we asked cybersecurity leaders, board directors and other subject matter experts about board cybersecurity discussions and the reporting given to boards in preparation for these discussions. All respondents had strong opinions about cybersecurity boardroom discussions. Generally, participants agreed that boards had a difficult time discussing cybersecurity at a meaningful level, the board needed different information, and a new approach was necessary.
By now most boards know that cybersecurity is a business risk that they must oversee and ensure proper mitigations are in place. In an earlier article, we described theWe made a case for discussing cyber resilience instead of cyber protection. Organizations cannot protect themselves enough to simply rely on additional investments in protection.
One respondent who identified as a C-level technical leader observed that boards want comparisons, especially for making assessments about cyber resilience. He said, “My board is interested in resilience, but also curious about what others are doing. They value peer insights and comparisons.” There were mixed responses when asked about what they thought would help access organizational risk due to cybersecurity vulnerabilities. Some respondents were not sure what would be needed for them to assess organizational risk. Some mentioned reviewing training details, others commented that an assessment of employees’ skills to handle potential organizational vulnerabilities.
The board level balanced scorecard for cyber resilience is shown in Figure 1. It combines financial, technological, organizational, and supply-chain indicators, and an aggregated indicator of resilience. Each of the four quadrants has three components: 1) the biggest risk, 2) the action plan for managing that risk, and 3) an overall indicator for quick assessment of risk to that area.
The Resilient indicator in the center of the balanced scorecard is an overall assessment of the organization’s cyber resilience based on the four quadrants.
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