Long-necked flightless birds burying their heads in the sand is apt to describe the prevalent reaction of boardroom investors regarding cyber security. Dina Medland for Forbes describes a frightening scenario of security spend locked at 4% of the IT budget while cyber threats mount at a rate of 66% in only five years.
Knock, Knock – Security Threat!
If this sounds like your IT outfit, it might be time to knock a bit louder on those board room doors. According to a PwC 2015 report, $2.7 million was lost due to cyber attacks in the current year, which marks a 34% increase from 2013 – these are just the reported incidents. Not surprisingly, few surveyed companies reported a cross-organizational effort to address IT security concerns:
…observations point the finger firmly at the heart of responsibility for corporate governance for any business: its boardroom, and that finger on the pulse of the strategy behind all the workings, including the supply chain. There have been multiple recent examples of cybersecurity issues across financial services and other industry sectors, and there is a growing sense there may be more lurking behind the supply chain.
A sample of retailers and consumer companies confirm suspicions of security weakness among supply chains, with current providers and contractors along with previous partners identified as major sources of security risk.
Medland interviewed LGIM’s Corporate Governance Director Sacha Sadan who was adamant in his support of increased security to combat cyber threats. Sadan calls for a more systemic approach to addressing IT security in the enterprise. It’s just a matter of convincing the ostriches.