SOURCE: Insurance Information Institute
A poll of board directors and executives from Forbes Global 2000 companies finds that cybersecurity is being taken much more seriously in the boardroom these days, as is cyber insurance.
Nearly two-thirds (63 percent) of respondents to the study developed by the Georgia Tech Information Security Center (GTISC) say they are actively addressing computer and information security, up from 33 percent in 2012.
There has also been a significant shift in the number of boards reviewing cyber insurance. Nearly half (48 percent) of respondent boards were reviewing their company’s insurance for cyber-related risks, compared with just 28 percent in 2012.
However, the 2015 survey suggests there may be confusion over what type of insurance to purchase or appropriate coverage limits. Only about half of the respondents (47-54 percent) indicated that they had quantified their business interruption and loss exposure from cyber events.
Almost all boards (90 percent) are reviewing risk assessments, and an increasing number of them (53 percent) are hiring outside experts to assist on risk issues. Interestingly, the highest degree of attention was being paid to cyber risks associated with supplier relationships.
The survey, which was supported by Forbes, the Financial Services Roundtable (FSR), and Palo Alto Networks, found that some of the biggest improvements over time have been organizational.
For example, the majority of boards (53 percent) have established a risk committee, separate from the audit committee, with responsibility for oversight of cyber risk. In 2008, just 8 percent of boards had this in place.
The financial sector far exceeds other industry sectors with 86 percent having a board risk committee separate from the audit committee, followed by the IT/Telecom sector at 43 percent.
Another positive sign? Boards are now placing much more importance on risk and security experience when recruiting board directors, with 59 percent saying their board had a director with risk expertise, and nearly one quarter (23 percent) one with cybersecurity expertise.
Something to bear in mind: the response rate to the 2015 survey was low – with results received from just 6 percent, or 121 respondents at the board or senior executive level at 1,927 Forbes Global 2000 companies.