Cyber security a crucial priority for boards
Cyber security a crucial priority for boards
As Cyber Security Awareness Month unfolds, BDO is urging board leaders and members to take proactive measures in reinforcing their firm’s cyber security.
With cyber incidents on the rise—both in frequency and cost—companies must prioritise their defences, according to BDO's national leader of cyber security, Leon Fouche.
The average cost of a data breach in Australia has surged to $4.03 million in 2024, marking the highest figure recorded to date.
Leon said the implications of a cyber security incident extend beyond financial losses, often crippling organisations through reputational damage and operational disruptions.
“Board members must play an active role in mitigating and preventing cyber-attacks,” Leon said.
“Alarmingly, only 12 percent of S&P 500 companies have a current or former board member with cyber expertise, a knowledge gap that could be detrimental to organisations now and in the future.”
To help bolster cyber security knowledge among boards, BDO has outlined six key strategies to ensure effective oversight of their organisational cyber security programs.
These strategies include establishing regular cyber education sessions, focusing on relevant metrics, leveraging industry benchmarks, and engaging external cyber security experts.
Leon said it’s imperative to conduct cyber simulations and maintain oversight during incidents while applying lessons learned in hindsight.
“By implementing these strategies, companies can enhance their resilience against cyber threats and improve the perception of their boards in the face of incidents,” Leon said.
“The landscape of scrutiny surrounding board directors has shifted significantly, necessitating a proactive approach to cyber security. A recent Gartner study revealed that 88 percent of boards consider cyber security a critical business risk.”
“In a landscape where cyber threats are ever-evolving, it is imperative that boards embrace their responsibility to ensure that the right technology and cyber risk management practices are in place to support their organisations’ goals.”
For media enquiries:
Tate Papworth
Manager, Media
E: tate.papworth@bdo.com.au
Ph: 0433 411 189