Breaking Down the Communication Barrier: Bridging the Gap Between CISOs and the Board

CISOs and Board Reporting – an Ongoing Problem

The Challenges Faced by CISOs

CISOs, or Chief Information Security Officers, often struggle to effectively communicate technical cybersecurity concerns and solutions to board members who may have limited technical knowledge. This disconnect poses a challenge for CISOs in gaining the support of the board and successfully implementing cybersecurity measures within an organization. According to a report by CyberSaint, a risk management company, CISOs face three primary challenges in their board reporting:

1. Technical Complexity

The technical nature of cybersecurity issues makes it difficult for non-technical businesspeople on the board to understand the implications and potential risks. This creates a barrier in effectively communicating the urgency and importance of cybersecurity measures.

2. Lack of Standard Reporting Metrics

Another challenge faced by CISOs is the lack of standardized reporting metrics. This makes it challenging to compare performance across different business units within an organization and across industry peers in other organizations. Without consistent metrics, it becomes difficult for board members to evaluate the effectiveness of cybersecurity strategies.

3. Time, Expertise, and Cost of Reporting

Reporting on cybersecurity issues requires significant time, expertise, and resources. Many CISOs resort to using simple spreadsheets to report on complex issues due to these constraints. This compromises the quality and effectiveness of the reporting and hinders the board‘s understanding of cybersecurity risks and solutions.

The Board‘s Priorities

The report also highlights the primary priorities of business leaders when it comes to cybersecurity reporting. These priorities include:

1. Strategic Risk Management

Business leaders want to understand how cybersecurity measures contribute to the management of strategic risk. They are interested in the potential impact on revenue, reputation, and customer trust.

2. Compliance Alignment

Board members seek reporting that demonstrates the organization’s alignment with compliance requirements. Compliance is a critical aspect of cybersecurity, and boards want to ensure that the organization meets regulatory obligations.

3. Impact of Cybersecurity Purchases

The board is keen to understand the impact of cybersecurity investments on top-of-mind threats such as ransomware. They want to evaluate the effectiveness of these purchases and understand the potential return on investment.

Improving Board Reporting

To address the challenges faced by CISOs and meet the expectations of boards, the report suggests several best practices:

1. Tailor reports to the audience

Boards and executive leadership typically require high-level overviews and key performance indicators, without delving into technical details. Reports should focus on providing an understanding of the business implications of cybersecurity issues.

2. Focus on business outcomes

Reporting should emphasize the impact of cybersecurity measures on business outcomes such as revenue, reputation, and customer trust. This helps board members connect cybersecurity to the organization’s overall performance.

3. Provide actionable information

Reports should include actionable guidance, such as the effectiveness of current controls, emerging risks, and the potential impact of cyber threats in financial terms. This helps board members make informed decisions about investments and potential losses.

4. Use a standardized reporting framework

Adopting a standardized reporting framework enhances consistency and comparability across departments and stakeholders. It also reduces the time and effort required to prepare reports, improving efficiency and accuracy.

5. Include risk scenarios

Illustrating potential threats and their potential impact through “what-if” scenarios helps contextualize the need for specific cybersecurity investments. This aids board members in understanding the relative importance and urgency of different mitigations.

6. Regularity

To ensure board members and executive leadership have accurate and timely information about the organization’s security posture, reporting should be done regularly. The frequency of reporting has been increasing, with almost 80% of CISOs reporting more frequent reporting in the past three to five years.

The Need for Improvement

Despite efforts to improve board reporting, boards still complain about receiving overly technical reports that fail to translate cybersecurity issues into business and financial terms. There is a lingering disconnect between CISOs and boards that needs to be addressed.

The Role of Automation

One part of the solution lies in the automation of reporting processes. With automation, CISOs can access current and relevant data for reporting purposes. This also enables the development or adoption of dashboard systems, which provide standardized reporting frameworks and allow for more frequent and regular up-to-date reporting. “What-if” scenarios can also be integrated into dashboard systems, aiding in the contextualization of cybersecurity investments.

Further Improvements Needed

However, automation is not the sole solution to the reporting problem. While it provides insights into the current security posture of the organization, it does not address the planning for solutions to newly emerging threats. CISOs need to further improve the quality of their board reporting by finding ways to effectively convey the financial and business implications of cybersecurity measures.

Editorial: Bridging the Gap for Effective Board Reporting

The Importance of Effective Reporting

Effective board reporting plays a crucial role in ensuring that organizations are equipped to address cybersecurity risks. Boards have a responsibility to oversee cybersecurity strategy and decision-making, and they heavily rely on the reporting provided by CISOs to make informed decisions. CISOs, in turn, rely on the support and understanding of the board to implement effective cybersecurity measures.

The Disconnect

The challenges highlighted in the report emphasize the ongoing disconnect between CISOs and boards. CISOs often struggle to translate highly technical cybersecurity concerns into language that can be understood by non-technical board members. The lack of standardized reporting metrics further complicates the situation, making it difficult to assess the effectiveness of cybersecurity measures.

Bridging the Gap

Both CISOs and boards need to take proactive steps to bridge this gap and improve communication. CISOs can begin by adopting the best practices identified in the report, tailoring their reports to the audience, focusing on business outcomes, and providing actionable information. Adopting standardized reporting frameworks and incorporating risk scenarios can also enhance understanding and comparability.

The Role of the Board

Boards also have a role to play in fostering better communication and understanding. It is essential for board members to educate themselves about cybersecurity risks and the financial implications of potential breaches. By actively engaging in cybersecurity discussions and seeking clarification when needed, board members can better support CISOs in their reporting efforts.

Collaboration and Partnerships

Collaboration between CISOs and boards is crucial in addressing the reporting problem. CISOs should actively seek feedback from board members and involve them in the strategic decision-making process. By involving board members in cybersecurity discussions and initiatives, CISOs can foster a better understanding of the challenges they face and work together to find effective solutions.

An Evolving Landscape

The increasing legal liability of CISOs and the regulatory requirements for cybersecurity reporting highlight the need for improved board reporting. As the landscape of cybersecurity continues to evolve and new threats emerge, it is crucial for CISOs and boards to adapt their reporting practices to ensure the organization’s security and overall success.

Advice for CISOs and Boards

For CISOs:

– Tailor your reports to the audience, focusing on high-level overviews and key performance indicators.
– Emphasize the impact of cybersecurity measures on business outcomes such as revenue, reputation, and customer trust.
– Provide actionable information, including the effectiveness of current controls, emerging risks, and potential impact in financial terms.
– Adopt standardized reporting frameworks to enhance consistency and comparability.
– Incorporate risk scenarios to aid in contextualizing cybersecurity investments.
– Increase the frequency of reporting to ensure accurate and timely information.

For Boards:

– Educate yourselves about cybersecurity risks and the financial implications of potential breaches.
– Actively engage in cybersecurity discussions and seek clarification when needed.
– Support CISOs by actively participating in strategic decision-making and providing feedback.
– Foster collaboration and partnerships with CISOs to better understand the challenges they face.
– Stay informed about regulatory requirements and legal liabilities related to cybersecurity.

Conclusion

Effective board reporting is essential in addressing cybersecurity risks and ensuring the success of organizations in an increasingly digitized world. CISOs and boards must work together to bridge the existing disconnect and improve communication. By adopting best practices, fostering collaboration, and staying informed, CISOs and boards can enhance their understanding of cybersecurity and make informed decisions to protect their organizations.