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Oliver F. Gosemann will the Governance of Germany boards go through profound change. Or will inertia built up over many years prevent radical change at the top of German companies?
One thing we know, and one is being parochial focusing on cybersecurity, is that German Boards (actually all covered boards) need to address board cyber risk governance. To address the major challenges they face with cybersecurity and cybersecurity risk management regulation. Boards have to consider how they attract talent that understands cybersecurity risk management, and how they stay on the right side of national and international cyber law. As some laws come with individual and corporate civil and criminal penalties.
Cyber is the top board risk in most jurisdictions and a risk that boards are ill prepared to manage. Unlike GDPR cyber attacks have been demonstrated to have a significant effect on corporate financial performance, something shareholders don’t like. A very real outcome as the cyber insurance gap increases, with increases in cyber attack frequency, complexity and impact severity.
One suspect that while it may be hard for outside investors to sue boards over violations of fiduciary duty. U.S and EU cyber regulators won’t hold back, as NIS 2, DORA fire up in 2025. Covered German boards, and board rooms across the EU, will be wondering how their national regulators will focus on corporate responsibilities and fiduciary duties. Given cyber is national, economic and societal risk, and now regulated.
@Thaddeus Dziekanowski Brian D. McCarthy Rachel V. Rose, JD, MBA
Veritas GRC
#cybersecurity #cyberriskmanagement #cyberregulation
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