Explanation
With increasing competitive pressure to leverage generative artificial intelligence (GenAI), now is the time for CEOs to better understand the technology itself.
Cybersecurity deserves this same level of attention. So too is the disconnect between C-level enthusiasm and skill levels. With the use of AI tools, cybercriminals and their attacks have become more sophisticated, and the use of this technology in enterprise environments raises a number of security concerns. As the use of GenAI increases within organizations, tensions across the executive team and boardroom also increase, especially as the role of the Chief Information Security Officer (CISO) changes. Data breaches have also skyrocketed significantly. All of this together points to the need for greater cybersecurity acumen across the C-suite to provide leadership and guidance to businesses.
why? Because companies that last understand how to avoid one of the most common and critical risks in business.
Improved strategic decision making, resource allocation, and collaboration
Cybersecurity acumen at the top of the organizational chart can have a significant impact on an organization’s overall security posture and risk management capabilities. This leads to several additional benefits for businesses.
First, companies can now incorporate security into their decision-making processes and strategic direction. This should never be an afterthought. Cyber risks are everywhere and appear in more decisions than people realize. It’s not just about overly simple passwords or opening phishing emails. Software-as-a-Service (SaaS) tools can serve as easy entry points for man-in-the-middle attacks that threaten your business.
Leaders in 2024 must recognize the need for security. Businesses have access to an incredible level of technology that helps them thrive, but so do malicious actors. Understanding that threats come from a variety of sources allows leaders to make strategic choices that enhance protection of data and intellectual property, rather than putting it further at risk.
That said, security isn’t necessarily cheap, and finding qualified resources in an already scarce security and AI market can be difficult at best. Resource allocation is important in the decision-making process to balance both threat attention and business costs. In today’s economic climate, budgets are under intense scrutiny for technology and business leaders. People who have a broad and deep understanding of the risks associated with deprioritizing security are better equipped to make smart decisions about where to allocate their investments.
Additionally, acquiring this type of security knowledge inherently improves a leader’s ability to collaborate with all of the different teams within the company. These conversations foster faster and better decision-making, especially during a crisis, while increasing respect between the chief information officer (CIO) and chief security officer (CSO). Enabling this collaboration also allows for better and clearer conversations with the board to protect the company from risk.
The attack surface for businesses across all industries continues to expand, and the need for transparency and collaboration continues to grow. Regulators are under increasing pressure as they grapple with the challenge of finding ways to deal with this new cyber reality. This can be seen in new rules and directives from the Securities and Exchange Commission, regulations such as the General Data Protection Regulation (GDPR) and the Digital Operational Resilience Act (DORA), to name a few. Non-compliance can be costly both financially and in terms of lost opportunities to defend against attackers. But achieving compliance requires departments and leaders to communicate to create and implement new strategies and policies.
However, the burden of proof to achieve this remains on top leaders. It is in the best interest and responsibility of executives to protect data and assets as much as possible for their customers and the company. The financial and reputational impact of a cyber-attack is a consideration that needs to be recognized in all major decisions at board level. The growing threat landscape creates a perfect storm that, if left unchecked, can expose businesses to significant losses.
Authenticity enables senior leaders to perform better at work
Cybersecurity is an important topic on every board’s agenda due to continued coverage of threats that bypass technology infrastructure and impact the customer experience at scale. Leaders need a kind of “public credibility” to effectively lead a dynamic, smart organization of technical and operational professionals. Few people have the right knowledge to recommend, lead and drive change towards a safer work culture, but it is only becoming more important.
People who can think technically while demonstrating a business mindset are best positioned to help organizations succeed. Some of the strongest leaders and executives I’ve ever met not only know what they’re talking about, but have a keen ability to explain the “why” of what they’re saying in terms that resonate. Some people have. Not familiar with the subject matter. The time has come for experts to direct actions rather than “actors”.
In the words of one of my mentors, “Leaders have followers. Managers just tell people what to do in the hierarchy.” Knowing yourself is not enough . You need to be able to provide that knowledge to others. That’s why you are essential as a leader. And with the average tenure of most cyber leaders being less than a year and a half, those of us in these positions cannot afford to ignore that reality. Commanding a space, rather than putting yourself in a situation where you have to react, is not only good for business, it’s good for leaders.
Leaders cannot afford to ignore the need for this type of knowledge.
Cybersecurity acumen is no longer specialized or reserved for a few educated individuals. This is reflected in the Securities and Exchange Commission’s recent decision requiring companies to report material violations within four days. While there is no specific requirement for cybersecurity expertise on public company boards, it has long been emphasized that only a small proportion of public companies have such expertise. Although this mandate was not ultimately passed, it is a testament to how seriously government agencies and regulators are taking cybersecurity, and it is only a matter of time before this becomes official guidance. is.
Prioritization of risk management and assessment must be done from the top down. Until CEOs and boards of directors prioritize learning more about these threats and how to mitigate them, organizations will leave themselves and their businesses exposed to the potential for disaster. But leaders who take the time and effort to study their games, players, and playbooks to better protect against threats will reap the benefits for years to come.
