2-MINUTE READ
Cyber breaches aren’t just technical issues because they’re financial catastrophes. Boards that ignore this risk are gambling with their company’s future.
ASIC Chair’s Warning: Mr. Joe Longo, Chair of the Australian Securities and Investments Commission (ASIC), has made it clear:
“If things go wrong, ASIC will be looking for cases where boards failed to take reasonable steps. Proceedings will follow if those steps weren’t taken.”
Would you risk everything on a gamble?
In Brief
A cyber breach isn’t just an IT problem. It’s a financial threat that boards must control. Calculating the financial risk is essential for effective governance.
Ignoring the numbers won’t save you from them.
The Risk
Boards that fail to quantify cyber risks face:
- Revenue loss
- Legal fees
- Reputational damage
- Operational downtime
ASIC’s Report 776 “Spotlight on Cyber” (Nov 2023) revealed:
- Most companies are reactive, not proactive.
- 20% haven’t adopted any cybersecurity standards.
Why It Happens
- Over-reliance on IT reports without financial analysis.
- Lack of frameworks for assessing financial impact.
- Assuming insurance covers everything.
If you’re only relying on IT reports, you’re flying blind.
How to Fix It
✅ Establish Financial Metrics: Tie cybersecurity risk to financial impact.
✅ Perform Risk Assessments: Regularly calculate your potential financial exposure.
✅ Integrate Cybersecurity Governance: Make it a board-level priority.
Calculate Your Financial Exposure
According to the Australian Government’s Australian Cyber Security Centre (ACSC), the average cost of a cybercrime incident for small businesses has skyrocketed to $46,000, while medium-sized businesses face an average of $97,000 per breach.
Breakdown of Potential Costs:
- Revenue Loss: Disrupted operations can cost SMBs thousands per day.
- Legal & Regulatory Fines: Average cost per incident is $39,000 for small businesses and $88,000 for medium businesses.
- Reputation Damage: Loss of customer trust can cripple revenue.
- Ransom Payments: Demands often exceed $10,000, but paying up usually doubles remediation costs.
Can your business afford that level of loss? Most SMBs can’t. And according to the ACSC, 62% of businesses experienced at least one disruptive cyber incident in the past year.
Final CTA
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Effective governance starts at the top, take charge now.
KNOW YOU’RE SECURE.
