Cybersecurity breaches pose a growing threat to any organization. As we’ve seen in recent years, and indeed in recent weeks, the most sophisticated companies and even governments aren’t immune from cyberattacks. Ransomware has become a global menace, and payment data and customers’ personal information are routinely swiped and sold on the dark web in bulk. Next-generation internet-of-things devices are wowing consumers, but they are also targets, as internet connectivity becomes standard-issue in more and more product lines.
How do directors prepare for this landscape? Everyone now acknowledges the importance of cybersecurity, but it is daunting to begin to think about implementing a cybersecurity plan because it’s technical, fast moving and has no silver-bullet solutions. Most boards now consult regularly with the organization’s information security team, but the discussions can be frustrating because it’s hard to gauge readiness and where the organization really stands in comparison to its peers. Sometimes directors confide in me, quietly and on the sidelines, that their real cybersecurity strategy is one of hope and prayer.
There are steps directors can take now to prepare for incidents so that when they occur the company’s response is well oiled. With the right resources and preparation, boards can safely navigate these difficult and unforeseen situations. Three key strategies can assist directors as they provide oversight for cybersecurity risks:
- Build relationships with law enforcement officials
- Have incident response plans in place (and practice them)
- Stay educated on cybersecurity trends
1. Build Relationships with Law Enforcement Officials
It’s no secret that relationships are central to success. Building the right relationships now, before your worst-case scenario happens, will help you manage the situation. The Federal Bureau of Investigation is generally the lead federal investigative agency when it comes to cybercrime, and the United States Secret Service also plays an important role in the financial services and payment systems sectors.
Boards should ensure company management educates law enforcement officials from these agencies about the company’s business and potential risks. In turn, the company should ask law enforcement to keep it apprised of emergent threats in real time. There should also be designated points of contact on each side to allow for ongoing communications and to make it clear whom to contact during an incident. This is critical to ensuring that the company has allies already in place in the event that a cyberattack occurs.
2. Have – and Practice – Incident Response Plans
Directors should ask to see copies of the company’s written cyber breach response plan. This document is essential. A good incident response plan addresses the many parallel efforts that will need to take place during a cyberattack, including:
a. Technical investigation and remediation;
b. Public relations messaging;
c. Managing customer concern and fallout;
d. Managing human resources issues, particularly if employee data has been stolen or if the perpetrator of the attack is a rogue employee;
e. Coordination with law enforcement; and
f. Coordination with regulators and preparedness for the civil litigation that increasingly follows cyberattacks.
An incident response plan is only valuable if it is updated, if all the relevant divisions within a company are familiar with it, and if these divisions have “buy in” to the process. If the plan is old or a key division doesn’t feel bound by it, the plan isn’t going to work. Directors should insist the plan be updated regularly and that the company’s divisions exercise the plan through simulated cyber incidents, often called tabletop exercises. Indeed, tabletop exercises for the board itself can be an excellent way to familiarize directors with the company’s incident response plan and its cyber posture more generally.
3. Stay Educated on Cybersecurity Trends
As your board is building relationships with law enforcement officials and preparing an incident response plan, directors should also be educating themselves on cyber risk. Cybersecurity becomes more approachable as you invest the time to learn – and it’s a fascinating subject that directors enjoy thinking about. Do you know what a breach will look like for your company? What protocols do you have in place in case something happens?
According to the 2016–2017 National Association of Corporate Directors (NACD) Public Company Governance Survey, 89 percent of public company directors said cybersecurity is discussed regularly during board meetings. Since a majority of directors in the room agree that cybersecurity is worth discussing, directors should collectively and individually prioritize learning the ins and outs of cyber risks.
One easy way to stay up to date on the latest is to ask the company’s information technology security team for periodic reports of the most significant security events that the company has encountered. This will give directors a feel for the rhythm of threats the company faces day in and day out.
Another option is for directors to take a professional course and get certified. The NACD Cyber-Risk Oversight Program is a great example of a course designed to help directors enhance their cybersecurity literacy and strengthen the board’s role in providing oversight for cyber preparedness. Consider these options to keep yourself as educated and informed as possible.
The more you can prepare individually, the better off you will be when you have to provide oversight for a cybersecurity breach at your company.
Published September 28, 2017.