Global risks are intensifying but the collective will to tackle them appears to be lacking. — The World Economic Forum’s “Global Risks Report 2019”
With the start of a new calendar year, chief information security officers (CISOs) are looking for ways to set the tone for the year and have more engaged conversations with top leadership regarding cybersecurity risks. The good news is January provided such an opportunity, but it’s not what you might expect.
Every year, the world’s elite descends on Davos, Switzerland, as part of the global gathering known as the World Economic Forum (WEF). A few weeks before they hold this event, the WEF releases its “Global Risks Report,” and this year, once again, cyber risks figured prominently. The report was based on survey responses from nearly 1,000 decision-makers from the business and government sectors, academia, nongovernmental organizations (NGOs), and other international organizations.
Cybersecurity Risks Once Again in the Top 5
The report opens with its distinctive global risks landscape diagram, and cyber-related risks fall in the top-right quadrant of global risks, both in terms of likelihood and impact. When it comes to likelihood, data fraud or theft came in fourth place after three environmental risks, with cyberattacks rounding out the top five.
When ranked by impact, cyberattacks still made it into the top 10, in seventh place, followed immediately by critical information infrastructure breakdown. The fact that data fraud or theft wasn’t in the top 10 risks by impact might indicate that markets and business leaders are more confident about the global economy’s ability to detect and respond to such an event.
This is by no means the first time that technology-related risks made it to the top of the list: Cyberattacks have appeared four times in the top five risks by likelihood since 2010 (in 2012, 2014, 2018 and 2019). However, in terms of impact, the only technology-related risk to make the top five was critical information infrastructure breakdown in 2014.
Is it symptomatic of a larger disconnect that, in the last decade, global leaders only once perceived a technology-related risk as a top-five risk in terms of impact? Do top leadership and board directors at your organization share this attitude?
A Conversation Starter for CISOs and Top Leadership
Of course, the WEF report is aimed at a global audience of business and government executives, so it might not be immediately apparent how CISOs could benefit from grabbing a copy and leafing through it. However, because technology-based risks — and more specifically, cyber-related risks — feature so prominently in the report, there is a unique opportunity to engage or re-engage top leadership and boards to discuss these issues and re-evaluate the organization’s current risk appetite. Among the topics covered in the report are many areas that CISOs should be ready to engage on, including:
- Machine learning and artificial intelligence (AI) — How, if at all, is your organization leveraging these technologies? Is the security function engaged at the earliest part of the process to implement them?
- Regulatory changes, such as the General Data Protection Regulation (GDPR) — Is your organization now fully compliant with the GDPR? Are there other GDPR-like regulations on the horizon that need to be on your radar?
- Interconnectedness of cybersecurity risks — Is your organization on its way to becoming cyber resilient? How often is your organization’s resilience put to the test?
- Quantum computing and cryptography — Who, if anyone, is keeping track of developments in quantum computing? How often is this disruptive technology being discussed, both in terms of the opportunities it presents, but also the risks to traditional cryptographic methods of protecting company secrets?
Interconnectedness Versus Resilience
If there’s one section of the report that CISOs should share with top leadership, it is the portion titled “Managing in the Age of Meltdowns” (just three pages long). As the interconnectedness of technology increases the potential for cascading failures, this section reminds us of the stakes: “When something goes wrong in a complex system, problems start popping up everywhere, and it is hard to figure out what’s happening. And tight coupling means that the emerging problems quickly spiral out of control and even small errors can cascade into massive meltdowns.”
The section covers different strategies to help deal with complex, dynamic systems and provides guidance for CISOs to review and improve the effectiveness of existing processes. Strategies include encouraging healthy skepticism and recognizing the value of clear and honest lines of reporting. CISOs should also try to “imagine failure” or, better yet, simulate a breach to practice their response. The report also reminds security leaders to perform thorough root-cause analysis, as “too often, we base decisions on predictions that are overly simplistic, missing important possible outcomes.”
Find a Rallying Point
Most CISOs know they’re more likely to be heard when aligning their messages and efforts with the concerns of top leadership. In a world of increasing global risks, security leaders must engage with all levels of the organization to truly understand what cybersecurity risks are top of mind, from the board and C-suite all the way down to entry-level analysts. Organizing around mutual concerns will help maximize security at the enterprise.