World Economic Forum publishes six ‘Principles for Board Governance of Cyber Risk’
- Published: Tuesday, 30 March 2021 07:57
The World Economic Forum has released a new ‘Insight Report’ that outlines six globally applicable principles to aid board directors in governing cyber risk. The paper is designed as a reference for corporate directors as they set their organization’s cyber security strategy and engage with stakeholders on the issue of cyber risk.
Cyber risk is among the top risks facing businesses today, and the World Economic Forum says that it has become clear that boards, especially, need stronger foundations to govern cyber risks effectively; companies that effectively manage the entire portfolio of risks, including cyber, do better in the marketplace.
The six principles are:
- Cyber security is a strategic business enabler
- Understand the economic drivers and impact of cyber risk
- Align cyber risk management with business needs
- Ensure organizational design supports cyber security
- Incorporate cyber security expertise into board governance
- Encourage systemic resilience and collaboration.
The report is the result of collaboration between the World Economic Forum, National Association of Corporate Directors (NACD), Internet Security Alliance (ISA) and a working group of industry professionals, supported by project adviser PwC.