U.S and EU regulators are addressing the management of cybersecurity risks by the public and private sector through cyber regulation. They are enforcing cyber compliance on the balance sheets of those covered entities. Transferring cyber risk management from what has for many organizations focused on incident management, ‘right of bang’, to one of regulatory compliance ‘left of bang’.  Requiring boards to take a proactive approach to managing cybersecurity risks, rather than wait to manage cyber incidents when they occur. By setting cyber regulatory compliance as a board requirement, boards will be required to demonstrate ‘situational awareness’ of cybersecurity and risk management.  Through the implementation of a cybersecurity risk management framework, cybersecurity program, board governance and oversight, assurance, and attestation of their organization’s cyber risks.

Boards will be held to account for the oversight, assurance and attestation of cybersecurity risk management and their cybersecurity strategy, governance, and incident disclosure, increasing legal and compliance risk.  Requiring boards to implement robust governance oversight and assurance to demonstrate regulatory compliance.  We have created a 3 Line of Defense target operating model to govern the oversight and assurance of cyber risk.  Integrating existing board committees and providing the executive board with the necessary information to attest cyber risk.