Cyber Risk is Business Risk: What the Board Needs to Know
In the previous article, we talked about why cybersecurity is a board-level issue, not just a technical problem. If you haven’t read it, you can find it here.
Now, let’s look at the specific cyber risks businesses face today, and why ignoring them is a mistake.
Cyber Attacks Disrupt Entire Industries
Cyber-attacks are not rare. They are happening every day, across every industry.
MOVEit Data Breach (2023) – A Global Supply Chain Crisis
In June 2023, a critical vulnerability in MOVEit (file transfer software), was exploited by cybercriminals. The breach affected thousands of organisations and nearly 100 million individuals worldwide. Banks, government agencies, and private companies that used MOVEit to transfer sensitive files found themselves very exposed. Organisations had to work fast to contain the damage and secure their data. The breach demonstrated a key lesson. Businesses do not have to be the direct target of a cyber-attack to suffer catastrophic consequences. Supply chain vulnerabilities are a major risk.
Sellafield Cybersecurity Failures (2024) – A National Security Breach
Sellafield, a high-risk UK nuclear waste site, was found guilty of cybersecurity failings over a four-year period. The site was fined over £300,000 for failing to secure critical infrastructure and data. Regulators uncovered serious security lapses that could have been exploited by cybercriminals. The financial penalty was only one aspect. The reputational damage to a nuclear facility was immense.
These incidents highlight a key fact. Cyber risk is business risk. It’s not about “if” an attack will happen, but when, and how well prepared your company is to deal with it.
The Role of Integrated Security Platforms
Many companies still rely on multiple fragmented security tools, which can create gaps that attackers can exploit. In response, there is a shift towards integrated security platforms that provide cohesive, centralised protection while allowing for third-party integration where needed or wanted. Organisations should evaluate whether their security investments offer both efficiency and flexibility, ensuring they are not locked into a system that limits adaptability as cyber threats evolve.
What the Board Needs to Focus On
1. Supply Chain Vulnerabilities
Many cyber-attacks happen through third-party companies. Does your company assess supplier security before granting them access?
2. Cyber Insurance Realities
Cyber insurance is not a safety net. Does your policy cover business disruption? How long would it take to access payouts after an attack?
3. Regulatory and Compliance Risks
Laws are tightening, and penalties are increasing. Is your business ready to meet new security and disclosure requirements?
Building a Culture of Proactive Cyber Defence
A reactive approach is no longer enough. Boards must ensure that cybersecurity is embedded into the company’s culture. This means continuous monitoring, regular updates to security infrastructure, and investing in AI-powered threat detection to stay ahead of attackers.
In the next piece, we’ll cover cyber resilience, what it really means and how to ensure your company can survive an attack.
To find out more about this article or our experience in the Technology market get in touch.
Get In Touch →
