If your board thinks cybersecurity is just an IT issue, you’re already losing. The hackers know it, and deep down, you probably do, too. Every year, companies just like yours find themselves blindsided and not because they weren’t spending money on security, but because their board was looking the other way.
2-MINUTE READ
The difference between surviving a breach and crumbling under one often comes down to how prepared your leadership team is. And right now, too many boards are in the dark.
In Brief
Cyber risk is no longer just an IT headache. It’s a ticking time bomb that leadership teams can’t afford to ignore. When things go south, it’s the executives – not just IT – who are left to pick up the pieces, explain the damage to customers, and answer to regulators. If you’re not embedding cybersecurity into your broader business risk management strategy, you’re gambling with your entire operation.
The Risk
If you think a breach is just about downtime or inconvenience, think again. We’re talking about operations grinding to a halt, millions in losses, shattered reputations, and lawsuits that make your board meetings look like panic rooms.
Here are just a few horror stories:
- Medibank (2022): Hackers stole 520GB of sensitive customer data and dumped it on the dark web when Medibank refused to pay a ransom. The damage? Over 9.7 million customers affected, reputational harm, and a PR nightmare.
- ClubsNSW (2024): A breach at their IT provider exposed over a million patron records. This wasn’t just an IT blunder; it was a legal and public relations crisis waiting to happen.
- Latitude Financial Services (2023): Weak employee credentials led to 14 million customer records being compromised. The financial hit? An estimated $76 million.
Why It Happens
- Leadership Complacency: Boards assume IT has it covered. Spoiler alert: IT doesn’t own business risk management, you do.
- Misaligned Priorities: Checking boxes for compliance doesn’t equal security. It’s like locking the front door while leaving every window open.
- Blind Spots in Vendor Security: You’re only as strong as your weakest link. How much do you really know about your third-party vendors’ security standards?
- Boards Are Easy Targets: The irony? Hackers know board-driven businesses are more likely to cave under pressure because of the stakes involved. They’re betting on your urgency to keep operations running and your willingness to pay to make problems disappear.
How to Fix It
✅ Stop Treating Cybersecurity Like an IT Issue: Make it a standing board agenda item. If you’re not talking about cyber risk, you’re part of the problem.
✅ Prepare for the Worst: Test your incident response plans. If you haven’t simulated a crisis, your first real crisis will be chaos.
✅ Vet Your Vendors Thoroughly: One weak link can take you down. Understand your supply chain risks and act accordingly.
✅ Focus on Resilience, Not Just Compliance: If your approach is just about ticking boxes, you’re already behind. Build a culture of security from the top down.
Case Studies/Comparisons
Medibank, ClubsNSW, and Latitude Financial Services all thought they had things under control until they didn’t. The takeaway? If you’re not actively questioning your preparedness, you’re setting yourself up to be the next cautionary tale.
Final CTA
Cyber risk is a business problem. If your board isn’t treating it that way, it’s only a matter of time before you find yourself in damage control mode. Want to make sure you’re ready for what’s coming? Subscribe to our newsletter for weekly tips on keeping your business safe and resilient.
KNOW YOU’RE SECURE.
