Adapt or Perish: 60% of board members have not received sufficient cyber resilience training in the past year
January 2024 by the Corporate Governance Institute
According to recent report findings by Bob Semple, Board Intelligence and The Corporate Governance Institute, almost two-thirds of board members have not received adequate support and training regarding cyber resilience in the past 12 months.
The research was conducted from May to July 2023 and included over 250 participants, consisting of Chairs, NEDs, and Executive Directors from both public and private sectors, including state-funded organisations and charities.
David W. Duffy, CEO and co-founder of the Corporate Governance Institute, has highlighted the rapid advancements in technology that have transformed the world within a single generation. However, he raises concerns about whether boardrooms keep the same pace, discussing the potential consequences of not providing proper training to board members.
“Cybercrime can devastate a company’s financial stability, brand identity, and market worth. It also risks customer trust, negative publicity, and legal repercussions. Everything points to long-lasting damage if companies are not prepared.
Considering the extensive repercussions, it is evident that each board must tackle cyber risks; this subject is an essential aspect of effective corporate governance. According to our survey, the significance of cyber resilience is growing considerably in all sectors, but it is worrying that 60% of board members have not received sufficient cyber resilience training in the past year.
All boards must take necessary precautions to safeguard their systems. Regular training and awareness programs should be conducted to educate board members about potential risks and ensure proper policies and procedures are in place in case of a breach. These policies and procedures should be reviewed and updated regularly. Ultimately, board members must be responsible and answerable for any security breaches”.
While use of technology in the boardroom has accelerated post-Covid, the research found that 82% of directors believe they could be making better use of technology to improve board performance. For example, just under 40% of boards are not yet using a secure board portal, and a quarter of directors expressed dissatisfaction with their board’s use of audio and video communication technologies.
Megan Pantelides, Executive Director of Research, at Board Intelligence, comments the following on the findings: “What’s clear from this research is that directors need and want better tools for the job—whether that’s higher-quality information, more secure collaboration tools, better hybrid-meeting solutions, or more regular training. We hope this report shines a light not just on the risks of inaction, but also the opportunities that these emerging technologies present if boards are better equipped to navigate them.”