The recent analysis by Diligent and Bitsight sheds light on the critical link between cybersecurity efforts and financial prosperity among businesses. Surprisingly, only a mere 5% of organizations globally have cybersecurity experts on their boards, despite the substantial benefits associated with such expertise. Countries exhibit significant disparity in cyber expert representation on boards, with France at 10% and Canada at a mere 1%.
The study unveiled a remarkable enhancement in cybersecurity performance for companies integrating cyber experts into specialized risk committees. Businesses with cyber experts on audit or specialized risk committees achieved commendable security scores, outperforming those without such expertise. The correlation extended to different types of committees, with businesses boasting specialized committees garnering higher security ratings than those with audit committees or lacking both committee types.
Notably, countries like Australia, the UK, Canada, and France showed a favorable inclination towards establishing specialized risk committees, directly impacting their overall security ratings. The significance of cybersecurity proficiency was further emphasized by the compelling relationship between advanced security ratings and financial performance. Companies with top-tier security ratings demonstrated significantly superior financial outcomes compared to those with basic security ratings, showcasing the tangible benefits of robust cybersecurity posture.
The report identifies sectors like healthcare and finance as leading the charge in cybersecurity performance, transcending other industries in security prowess. The financial sector particularly emerged as a frontrunner in advanced security ratings, reflecting the sector’s robust governance fundamentals. This culmination of data emphasizes the imperative for boards and business leaders to elevate their cyber risk literacy, recognizing cybersecurity as a strategic enterprise risk with profound implications on business sustainability and growth.
