You’re watching a Future Office of the CFO Minute, where you’ll find timely perspectives designed to equip financial executives for strong, future-ready decisions. In this episode, Wayne Sadin, an Acceleration Economy Analyst and experienced advisor to CEOs and Boards, gives insight on holding the board of directors accountable for cybersecurity initiatives.
00:18 – Recently, investors sued the board of directors at Solarwinds. They sued based on the claim that the board was derelict in their duty of care. Furthermore, they called out the directors for needing to better understand the cybersecurity posture of the company.
00:37 – This is evidence of holding boards to higher standards. For instance, the duty of care emphasizes how boards need to focus on the company and understand the industry. Then they can take prudent action as needed. This is holding directors accountable for their involvement with cybersecurity. For example, that might involve having a cybersecurity expert on the board.
01:00 – Risks are not exclusive to cybersecurity. Other risks include system failure, disaster recovery issues, and implementation risks.