CDSA

Directors Focusing More on Cybersecurity — But is it Enough? (CFO)

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Corporate directors are spending more time discussing cybersecurity issues in the boardroom and more money to mitigate cyber risks than a year ago, but they are still reluctant to go public with information about attacks, according to a survey by BDO USA.

Almost three quarters (74%) of 160 public-company directors said their boards are now more involved with cybersecurity than they were last year (see chart), and 80% have expanded their cybersecurity budget, by an average of 22%.

“Corporate directors are being briefed more often and are responding with increased budgets to address this critical area,” says Shahryar Shaghaghi, BDO’s national leader of technology services.

The surge in board participation is likely caused by increases in cyber-attack activity. More than one in five directors (22%) reported that the companies they oversaw experienced an attack in the past two years (22%), which was double the percentage reported (11%) in BDO’s 2013 survey.