Security News > 2024 > March > Advanced cybersecurity strategies boost shareholder returns

Companies demonstrating advanced cybersecurity performance generate a shareholder return that is 372% higher than their peers with basic cybersecurity performance, according to a new report from Diligent and Bitsight.

The report also reveals that highly regulated industries, such as healthcare and financial services, have the highest cybersecurity ratings, and companies with either a specialized risk committee or audit committee achieve better cybersecurity performance compared to those with neither, with ratings of 710 and 650 respectively.

"Cybersecurity is no longer about simply mitigating risk, it's now a key indicator of financial performance. Companies must treat cybersecurity as a cornerstone of their business strategy, guided by clear, ambitious benchmarks, and backed by the full support of their boards," added Dr. Homaira Akbari, CEO of AKnowledge Partners, Board of Director member for Banco Santander and Landstar System and member of Bitsight's Advisory Board.

The average total shareholder return for companies with advanced security performance ratings over a five-year and three-year period was 71% and 67%, respectively, while companies in the basic performance range delivered 37% and 14% TSR over the same time frames.

The median cybersecurity rating for companies with specialized risk committees is 730, compared to 720 for companies with just audit committees, indicating there is not a significant difference in the ability of the audit committee to oversee cyber risk compared to a specialized risk committee.

Companies with cybersecurity experts on either audit or specialized risk committees achieve an average security performance rating of 700, whereas companies with cybersecurity experts on the general board, but not on either committee attain a security rating of 580.

News URL

https://www.helpnetsecurity.com/2024/03/29/cybersecurity-board-oversight/