Source: Keman Huang, Xiaoqing Wang, William Wei, and Stuart Madnick (HBR)
Cyber risks are on the rise, with organizations experiencing multiple data breaches and a surge in ransomware attacks. These incidents have significant consequences, including stock price declines and market cap losses. The impact can spread throughout the supply chain, causing even greater losses. Long-term effects include increased costs, such as remediation and legal fees, as well as potential credit-rating downgrades and underperformance in the market. To mitigate these risks, executives should have a cybersecurity champion on the board and develop a long-term cybersecurity strategy. This includes integrating cybersecurity into processes and structures, prioritizing cybersecurity at the organizational level, and fostering a strong cybersecurity culture among employees. Taking these steps is crucial for protecting the bottom line and maintaining competitiveness in the face of evolving cyber threats.
