A recent report by Accenture titled – “The Cyber-Resilient CEO” reveals a striking disparity between CEOs’ recognition of the criticality of cybersecurity and their confidence in their organizations’ ability to ward off cyber threats. Despite 96% of CEOs believing that cybersecurity is pivotal in organizational growth and stability, a significant 74% expressed concerns about their capacity to avert or mitigate damage from potential cyberattacks.
3 factors that pose a challenge to CEOs
The report outlines three major challenges faced by CEOs in implementing cybersecurity strategies:
- Limited understanding of cybersecurity’s impact on business – A significant 54% of CEOs believe that the expenses associated with cybersecurity implementation far exceed the costs of enduring a cyberattack. However, this perception contradicts the actual scenario. This misunderstanding often leads to a lack of strategic emphasis, with just 15% of CEOs reporting dedicated board meetings to address cybersecurity matters.
- Categorizing cybersecurity risks as compliance issues – 44% of CEOs do not regard cybersecurity as integral to their strategic business operations. They consider it something that necessitates sporadic attention rather than a continuous focus. Furthermore, a significant 60% of CEOs admit that their organizations do not embrace a “security-by-design” approach, which means cybersecurity is not integrated into their business strategies, specific services, or products from the initial stages.
- Inability to keep up with the business impact of evolving threats – 64% of surveyed CEOs expressed concerns that cybercriminals could leverage generative AI to craft advanced cyberattacks, including phishing scams, social engineering ploys, and automated breaches. However, just 33% of CEOs strongly said they have a strong understanding of the evolving cybersecurity threat landscape and the potential financial repercussions that might result from a failure to predict and address emerging risks.
Notable outcomes for cyber-resilient CEOs
The report identifies 5% of CEOs as “cyber-resilient CEOs,” who employ a holistic approach to cybersecurity across all facets of their organizations.
The companies led by these cyber-resilient CEOs demonstrate impressive capabilities in detecting, containing, and remediating cyber threats. Compared to other organizations, they achieve faster breach response times by 36%, containment by 46%, and remediation by 25%.
On the financial front, cyber-resilient CEOs outperform their peers with 16% higher incremental revenue growth, 21% more cost-reduction improvements, and 19% healthier balance-sheet enhancements on average.
Proactive actions of cyber-resilient CEOs
Cyber-resilient CEOs demonstrate proactive steps that set them apart from their less-prepared counterparts:
- Integrating Cyber Resilience into Business Strategy: Cyber-resilient CEOs are twice likely to integrate cyber resilience into the business strategy from the outset, managing cyber performance like financial performance.
- Fostering Shared Cybersecurity Accountability: Compared to 37% of cyber laggards, 68% of cyber-resilient CEOs are likely to establish shared cybersecurity accountability across the organization, fostering a collaborative approach within the C-suite. This empowers executives to champion cybersecurity as a competitive differentiator, accelerating innovation securely. Additionally, 54% will closely collaborate with their CISOs to assess and manage the risks associated with generative AI, ensuring safe and effective utilization, compared to 33% laggards.
- Securing the Digital Core: As the adoption and implementation of digital and emerging technologies intensify, cyber-resilient CEOs are more than twice as likely to express intent to bolster their cybersecurity budget, registering at 76% versus 35% for their less-prepared peers.
- Extending Cyber Resilience Beyond Organizational Boundaries: Cyber-resilient CEOs are 40% more likely to implement specific policies and controls for third parties, and even more inclined to advocate for an enterprise-wide risk assessment approach that cuts across business units and functions.
- Embracing Ongoing Cyber Resilience: Demonstrating a steadfast commitment to continually establishing industry-leading cybersecurity measures, they adapt to the evolving risk landscape and align with C-suite priorities. This proactive stance is evidenced by 60% of cyber-resilient CEOs, whereas only 34% of their less-prepared counterparts share this commitment.
To bridge the cyber-resiliency gap, organizations must prioritize cybersecurity as an enterprise-wide imperative. This necessitates the implementation of robust reporting processes, active involvement of employees at all levels, and heightened commitment and accountability across the C-suite and the board. By adopting these measures, organizations can proactively fortify their defenses against evolving cyber threats and ensure sustained growth and stability in an increasingly digital landscape.
Source: Accenture
