74% of CEOs are concerned about their organizations’ ability to avert or minimize damage to the business from a cyberattack – even though 96% of CEOs said that cybersecurity is critical to organizational growth and stability, according to Accenture.
CEOs assign cybersecurity responsibility to CISOs
60% of CEOs said their organizations don’t incorporate cybersecurity into business strategies, services or products from the outset, and 44% believe cybersecurity requires episodic intervention rather than ongoing attention.
Adding to this reactive stance is the incorrect assumption by 54% of CEOs that the cost of implementing cybersecurity is higher than the cost of suffering a cyberattack despite history showing otherwise. For instance, the report notes that a global shipping and logistics company breach resulted in a 20% drop in business volume, with losses hitting $300 million.
In addition, despite 90% of CEOs saying cybersecurity is a differentiating factor for their products or services to help them build customer trust, only 15% have dedicated board meetings for discussing cybersecurity issues.
This disconnect might be explained by the fact that 91% of CEOs said cybersecurity is a technical function that is the responsibility of the CIO or CISO.
Generative AI poses new cybersecurity challenges
The report also suggests that generative AI holds the potential to introduce a greater level of advanced security threats introducing new challenges that even best-practice cyber defenses may not fully address. 64% of CEOs surveyed said that cybercriminals could use generative AI to create sophisticated and hard-to-detect cyberattacks, such as phishing scams, social engineering attacks and automated hacks.
“The acceleration of generative AI makes it even more essential for organizations to take measures to ensure the security of their data and digital assets,” said Paolo Dal Cin, global lead of Accenture Security. “Unfortunately, it is often only after they experience a material cyber incident that they elevate cybersecurity to a board-level and C-suite priority and expand expectations beyond technology functions to protect their organizations better. Integrating cybersecurity risk into an enterprise risk management framework is the key to ensuring better security, regulatory compliance, business protection and customer trust.”
The research identifies a small group of CEOs who excel at cyber resilience. This group—which Accenture calls “cyber-resilient CEOs” and accounts for 5% of respondents—uses a wider lens to assess cybersecurity across all aspects of their organizations.
The companies of these leaders detect, contain and remediate cyber threats faster than other organizations. As a result, their breach costs are considerably lower and financial performance significantly better than the rest, achieving 16% higher incremental revenue growth, 21% more cost-reduction improvements, and 19% healthier balance-sheet improvements, on average.
On the flip side are “cyber laggards”—accounting for 46% of the CEOs—who don’t consistently or rigorously take any of the actions that cyber-resilient CEOs do and are typically stuck in a reactionary mode.
Five cyber-resilient actions
Embedding cyber resilience in the business strategy from the start. Cyber-resilient CEOs are nearly twice as likely to manage cyber performance in the same way they manage financial performance (60% vs. 33%).
Establishing shared cybersecurity accountability across the organization. Cyber-resilient CEOs are far more likely adopt shared accountability across the C-suite, inspiring executives to champion cybersecurity as a competitive differentiator that accelerates innovation safely (68% vs. 37%) and work closely with their CISOs to assess and manage the risks of generative AI, ensuring that the technology is used safely and effectively (54% vs. 33%).
Securing the digital core at the heart of the organization. Cyber-resilient CEOs are more than twice as likely to say they plan to boost their cybersecurity budget as the adoption and implementation of digital and emerging technologies intensifies (76% vs. 35%).
Extending cyber resilience beyond organizational boundaries and silos. Cyber-resilient CEOs are 40% more likely to implement specific policies and controls for third parties and even more likely to promote an enterprise-wide risk assessment approach that cuts across business units and functions (64% vs. 41%).
Embracing ongoing cyber resilience to stay ahead of the curve. Cyber-resilient CEOs are far more likely to commit to continually establishing industry-leading cybersecurity measures that take into account the changing risk landscape and align with C-suite priorities in order to protect the business and detect and respond effectively to cyberattacks (60% vs. 34%).
The constantly evolving and never-ending threat landscape is creating a wide gap between CEOs’ increasing awareness of the business impact of cyberattacks and their lack of confidence to mitigate them,” said Valerie Abend, global cybersecurity strategy lead at Accenture Security. “This should be a wake-up call for all those in the C-suite. To close the cyber-resiliency gap, cybersecurity should be viewed as an organization-wide priority—with the right processes for reporting; the involvement of employees at all levels; and greater commitment from and accountability across the C-suite and the board.”