Company directors could be easily forgiven for feeling lost when it comes to managing cybersecurity risks. With seemingly daily headlines on cyber breaches at some of the world’s largest companies, the threat of cybercrime or a breach is real, but navigating the market for solutions often feels like a meandering path without a destination.
Unfortunately for those same directors, their fiduciary duty to shareholders and the personal liability they face as board members may require them to take informed steps to protect the company against cyber risks and cybercrime. Indeed, AIG sees cybercrime as one of the most pressing threat facing boards today, and nowhere does cybercrime represent more of a risk than in Asia. This is particularly the case in China where cybersecurity risks have skyrocketed by over 900% since 2014, but Chinese companies actually dropped their cybersecurity budgets in 2016.
Today, corporate officers and boards are faced with complex decisions around how to implement technology. If they choose not to modernise their operations, they run the risk of becoming an inefficient and outdated organisation that cannot keep up with technological benefits of the times. Conversely, by modernising their infrastructure, new risks are created, particularly in the form of cyber attacks and fraud; if not properly addressed, these cyber risks can destroy the value and reputation of a company just as fast as officers would have expected to see efficiency gains.
To read more about how boards should reconsider their liabilities and risks around cyber, read the full report here.
A version of this article originally appeared on EJ Insight. You can read it here.
The content contained herein is intended for general informational purposes only. Companies and individuals should not solely rely on the information or suggestions provided in this article for the prevention or mitigation of the risks discussed herein.