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Cybersecurity has become a much more frequently used term in the boardroom over the last two years. Historically it has often been referred to as an information technology (IT) risk, and the management and oversight of cybersecurity was down to the chief information or technology officer ultimately and not the board.
Risk oversight is the term that is used to describe the role of the board of directors of an enterprise in the risk management process. This process refers to means and methods by which the board can determine if the company has in working operation an adequate and robust system for identifying, prioritising, sourcing, managing and monitoring the significant risks to that enterprise.
Across the globe the major risks corporations are facing include service interruptions, cybersecurity attacks, disruptions to supply chain and distribution, natural disasters and political crises amongst others. As an example, the cost of cyber-crime to companies worldwide averaged approximately $5.9 million over 2013 which is an increase of 56% from 2012.
The bar is being raised for boards across the globe when it comes to the area of risk management. Regulatory bodies worldwide are gradually publishing requirements for changes to corporate governance codes which are incorporating guidance for standards of effective risk management and reporting. In particular guidance for directors of all types