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Cyber regulations including the SEC cyber proposal will bring a suite of risk and cyber challenges to boards. Requiring public companies to disclose the cybersecurity experience of board members.
â¬ÅDirectors don⬢t grow on trees and, certainly, directors with cybersecurity experience don⬢t grow on trees,â¬
Digital fines are coming fast for tech firms, with the $1.3 Billion Facebook fine. But one should be more concerned with the fines that the SEC levies for compliance failures. The recent fine by the SEC against Alliance Global Investors of $1billion to settle SEC charges and over $5 billion in restitution to victims, that went generally unnoticed (https://lnkd.in/eXqpN5uD). Or the Department of Justices own Civil Cyber Fraud initiative that is gathering pace should be of concern. Add to this cyber regulation developing in the EU that will effect CNI providers and FIs, Canada recent announcement to develop cyber regulations for its defense industry and Australia’s drive to implement cybersecurity. The cyber risk management becomes an international problem for large public firms.
Finding directors, especially those with cyber experience is like finding a needle in the proverbial haystack. Let alone those with experience in address regulatory compliance, as cyber becomes highly regulated. As the former Counsel appointed cyber and risk expert and witness to the ICO one appreciates the line you sit on when providing regulatory advice on cyber. Especially the challenges that CISOs and boards face if and when things go wrong. Boards of directors and Internal and external counsel must be clear on what reasonable cybersecurity risk management is. As it may well get tested in court, and the SEC has its own court.
Ted Dziekanowski
#cybersecurity #cyberriskmanagement #cyberregulation
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