Paper Example: Accountability Gap

Padgett-Beale governance has and is grappling daily with the norms of technology's innovation and evolution double-edged sword. With the introduction and implementation of new technology's properties, for example, high levels of efficiency, speed, and capabilities to the firm, various waves of cyber-security immediately follow; thus, threatening the role of technology as well as its users (Skroupa, 2018). Occasionally, Padgett-Beale's protection mechanisms have drastically failed to keep up with the new waves of cyber threats; therefore, establishing millions of dollars of damages from breaches. Ideally, the Padgett-Beale faces a lack of personal and organizational accountability for the security of Padgett-Beale's sensitive data (Tewell, 2014). In other terms, the accountability gap reflects up as the lack of agreement between the Board of Directors' present awareness and readiness for cyber threat challenges and their responsibilities.

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Cyber Security and Responsibilities of the Board of Directors (BoDs)

Indeed, after performing research, different organizations have various directors' outline on cyber-risk oversight, but Padgett-Beale relies on the National Association of Corporate Directors (NACD) Handbook on Cyber Security. According to the framework, the directors are required to acknowledge, understand, and handle Cyber Security as a business-wide risk management problem rather than just an Information Technology issue (Skroupa, 2018). Next, the BoDs need to understand the legal and policy-related implications of cyber threats as they associate with Padgett-Beale-specific events; therefore, the BoDs need to relate the severity of breaches as a threat to their position; consequently, they are to handle the issue of cyber threats with caution as well as seriousness (Veltsos, 2019).

Additionally, the BoDs need to be in direct contact with Cyber Security experts and hold regular meetings on the management of cyber threats by ensuring all these professionals receive all the required resources to prevent such attacks (Veltsos, 2017). Moreover, the Board of Director's responsibility is to ensure that Padgett-Beale implements principles the best practices of risk management to improve security and resilience of critical infrastructure" (Metivier, 2018, Para. 7). Lastly, the Board of Director's obligation is to hold cyber threat discussions that focus on highlighting risks to avoid, mitigate as well as the individual plan for each approach (Veltsos, 2017).

Recommendations for Closing the Accountability Gap

Many mitigation plans can be implemented by BoDs to prevent the accountability gap. First, the BoDs need to identify and specify their role; for example, they need to make the cyber security specialist know that cyber security risk management is not their obligation since their work is risk oversight (Tewell, 2014). Next, Padgett-Beale needs to create and promote an open culture that educates and empowers the board since some of them are not technologists; therefore, making them vulnerable to interpreting cyber security measures and reports (Curry, 2017). Also, these ideal executives need to employ or engage a third party to privately and objectively measure the cyber security risk management program and controls and keep them updated if it meets its goals (Curry, 2017). Nonetheless, the board needs to mandate the management towards giving them access to regular updates with key metrics on the controls (Tewell, 2014). Lastly, the board requires reviewing cyber security measures and reports that are well designed and explained in plain English for easy understanding and learning (Tewell, 2014).

Conclusion

To conclude, Padgett-Beale implements and applies the National Association of Corporate Directors Rules and Guidelines on cyber security, which highlights the responsibilities of its Board of Directors. Unfortunately, the firm has and is experiencing an accountability gap; therefore, forcing the BoDs to re-strategize their approach toward cyber threats. Some of the recommendations to mitigate the gap are identifying the role of the BoDs as risk oversight and not management, creating and promoting an open culture that trains and educates the BoDs, and employing third-party cyber security experts, among others to assist them in learning more about the threat.

References

Curry, S. (2017, November 16). Boards should take responsibility for cybersecurity. Here's how to do it. Retrieved from https://hbr.org/2017/11/boards-should-take-responsibility-for-cybersecurity-heres-how-to-do-it

Metivier, B. (2018, April 2). Cyber security roles and responsibilities for the Board of Directors. Retrieved from https://www.sagedatasecurity.com/blog/cybersecurity-roles-and-responsibilities-for-the-board-of-directors

Skroupa, C. (2018, April 19). Cyber security and the board's responsibilities -- 'What's reasonable has changed.' Retrieved from https://www.forbes.com/sites/christopherskroupa/2018/04/19/cybersecurity-and-the-boards-responsibilities-whats-reasonable-has-changed/#1339bd333c3c

Tewell, C. (2014, July). SEC clarifies duties of the board of directors regarding cybersecurity and data breaches. Retrieved from https://www.dwt.com/insights/2014/07/sec-clarifies-duties-of-board-of-directors-regarding

Veltsos, C. (2017, February 8). NACD publishes five cybersecurity principles every Board Director needs to know. Retrieved from https://securityintelligence.com/nacd-publishes-five-cybersecurity-principles-every-board-director-needs-to-know/