In today’s business landscape
all large organizations require a briefing to occur on cyber risk to the
executive board. The board is expecting to gain an understanding of the organization’s overall risk and gain insight into the recommended course of actions
needed to lower the potential for harm to the business. In order to do this
effectively, the senior Risk leader or information officer must be able to
convey his or her thoughts in a logical sense that presents an overall
organizational risk, not just the IT security risk associated with it.
To
effectively present the risk to the board, the presenter should speak without
being too technical, using scare metrics, or presenting too many risks that do
not correlate up to the strategic goals or outcomes of the business. “The key
to having successful senior leadership or board-level presentations comes down
to these simple principles:
·
Remember
that when presenting to any audience it is about them, not you.
·
To
be relevant to senior executives or boards, stop using technobabble that is
most relevant to IT operations, but no one else.
·
Stop
scaring everyone into believing the sky is falling…again.
·
Help
leaders make informed risk-management decisions by ensuring they have (and
understand) all the necessary information.
·
There
is nothing more damaging to credibility than a lack of consistency over time.
·
While
the leaders are being provided valuable insights, it does not mean a presenter
cannot get something out of the meeting as well.” (Booth, 2019)
Since presenting to the board requires
effort, it is best to have IT leaders work toward communicating effectively to
convey the level of risk in an understandable manner that can achieve results. This
requires Information officers to be able to build relationships with the board
and earn trust. To do that they must speak the same type of business risk
language. “Boards, executive management, and technology leaders are
struggling to connect the dots on a wide range of topics familiarly grouped
under the heading of cyber. At the
core of this struggle is the view that business executives and security
professionals seldom speak the same language. Perhaps more importantly, they
rarely approach cyber challenges in a way that integrates multiple competencies
to create better business context and insight in their cyber strategies.”
(Deloitte, 2019)
This understanding between both the
IT security leader and the board is essential to addressing cyber risk. To
effectively align these leaders, the cyber risk management strategy must become
part of the business strategy. Both must be able to work together to achieve the
same goal while placing a priority on the reduction or management of the
emerging cyber risk. “The team should
“communicate using the same language as the business, otherwise the
interpretation of risks can differ”. So think about what the board needs to
know, and seek to make risk relevant to the business and stakeholders – this is
the only way to ensure an enterprise-wide risk strategy.”(Rossi, 2018)
Once the hurdle
of speaking the same language is overcome, the IT leader must be able to drive
business decisions while supporting choices made about managing the cyber risk.
Every board must decide how to prioritize funding and not every risk will
equate to a strategic ROI. “The business and
technology innovations that companies are adopting in their quest for growth,
competitiveness, and cost optimization are, in turn, leading to heightened
levels of cyber risks. Bad actors exploit weaknesses that are byproducts of
business growth and technology innovation. Such weaknesses could be related to
mergers and acquisitions, new customer services, supply chain models,
applications, and mobile tools designed to engage consumers, and new technologies
purchased to help improve efficiency and control costs. Being too risk-averse
is not an option, and cybersecurity stretches beyond internal operations.”
(Deloitte, 2019)
This understanding of why and how business innovations
affect growth based on cost is paramount to organizational success. This
understanding helps the IT leader prioritize the information needed for the
board to maximize both party's time increasing overall value-added. “Presenting
the impact of cyber risk and of possible risk mitigations in financial terms
allows the board and executive management to engage, to participate in the
decision-making process, and to fulfill their cyber risk governance duties.”
(Sanna, na)
Ultimately,
this understanding should allow the board to build a cyber resilience strategy
into their overall business strategy. “Adequate organizational resilience
is about operating the business while fighting back and recovering. Maintaining
this level of performance requires the ability to measure an organization’s
digital resilience much the way a board oversees its financial health. For
board members, no fiduciary obligation is more urgent than overseeing and,
where necessary, challenging how executive leadership manages the risks to the
company. “(Rothrock, 2017) If conveyed correctly, the IT leader will help
to shape the board’s view of resiliency and become an integral part of the
organizational strategic plan.
Overall, presenting to an organization’s
board of executive leadership about cyber risk is of critical importance to the
organization. It conveys the organization’s cyber risk in a manner that aligns
with the business strategic goals. This presentation empowers the decision-makers
to become active in an area that previously they may not have been. By
illustrating the threat, without scaring or feeding too much technical data,
the board can know to make financial decisions on what is considered the most
vital areas of the organization to protect. This will enable the board to
continue to advance the organization into a more innovative future state with a
reduced risk posture.
References
Booth, S.
(2019, May 6). The biggest mistakes made when presenting cybersecurity
to senior leadership or the board, and how to fix them. FireEye. https://www.fireeye.com/blog/executive-perspective/2019/04/biggest-mistakes-when-presenting-cyber-security-to-board-and-how-to-fix.html
Deloitte.
(2019, May 19). Communicating the value of cybersecurity to boards and
leadership. Deloitte Insights. https://www2.deloitte.com/us/en/insights/industry/health-care/value-of-cybersecurity-life-sciences-health-care.html
Rossi, B.
(2018, May 15). How to communicate cyber risk to the board.
Information Age. https://www.information-age.com/how-communicate-cyber-risk-board-123460092/
Rothrock, R.
(2017, November 16). The board’s role in managing cybersecurity risks.
MIT Sloan Management Review. https://sloanreview.mit.edu/article/the-boards-role-in-managing-cybersecurity-risks/
Sanna, N. (.
(n.d.). How to communicate cyber risk to the board. Quantitative
Information Risk Management | The FAIR Institute. https://www.fairinstitute.org/blog/how-to-communicate-cyber-risk-to-the-board