Are you prepared for the unthinkable? Cyber breaches can have devastating consequences, but one of the most significant risks is often overlooked: reputational damage. And the harsh reality is, insurance can’t restore reputation, and worse, if you are a director, there may be underlying legal obligations that could leave you in hot water, personally.
The Cost of Complacency
Reputation damage can be catastrophic, the consequences can be long-lasting, with some businesses never fully recovering from the loss of client trust. However, the reality of today is you don’t need to suffer a cyber incident to feel the consequences of poor cyber preparedness. Your clients may disqualify you from their supply chain if you don’t meet their cyber risk management standards, and that’s a self-inflicted wound. In today’s landscape, clients are setting a minimum benchmark for a “fit and proper” supplier, and if you don’t meet it, you’ll be left behind.
Acknowledging the Risk
Acknowledge the risk, and understand what the impact to your business may be. Cyber breaches are no longer a matter of if, but when. Get educated on the threats and vulnerabilities, and create governance frameworks to mitigate them. Explore quality frameworks like ISO 27001 to ensure you’re meeting industry standards.
Regulatory Obligations
Understand your regulator and legislative obligations, and ensure the board is not just informed but actively manages the risk. Cybersecurity is a board-level issue, and directors have a fiduciary duty to protect the company’s assets, including its reputation.
Client Trust
As a business, you play a critical role in the success of your clients’ businesses. If you’re seen as a liability, your client relationships will become brittle. Cyber breaches can damage that trust, potentially leading to a loss of business and revenue.
It’s not an IT Issue
People frequently think of cyber as an ancillary technical issue. It needs to be treated as a business and commercial issue that requires attention from the top down, putting its importance and your central role in dealing with it in their proper place. Unlike many other risks in your business, cyber can bring it all to a standstill if you’re not prepared. Take action today to protect your reputation, your clients, and your business.
Want to take the first step? We can help, with our Cyber GRC Solution for business, [email protected]