Cyber Risk Management Starts with Risk Quantification – Padraic O’Reilly – BSW #332
Cyber has been an historically hermetic practice. A dark art. Full of mysteries and presided over by magicians both good and bad. This is a bit of an exaggeration, yet there is some truth to it. Many in our industry knew that the SEC was evaluating the role that cyber risk management and incident disclosure plays in the pricing mechanism for an equity. Many of the participants in GRC, IRM, and Cyber Risk anticipated this before the SEC had even proposed such rules. Boards, C-Suites, and Information security teams within publicly traded companies brought it up occasionally in the year preceding its adoption. Lawyers on K Street actively advocated in the press against enacting such rules, and there is still a hearty back and forth concerning the merits of SEC involvement in cyber risk. But more transparency is a very welcome development. For investors, it’s essential.
Industry veterans say that this development hearkens back to Sarbanes Oxley, which had very big implications for Governance, Risk, and Compliance. This is likely cyber risk’s SOX moment, and the drop date is December 15th of this year on all 10-K filings. The SEC will not look kindly upon boilerplate disclosures, particularly if a cyber attack with significant losses occurs. So where do you start?
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Guest
Padraic O’Reilly is Chief Product Officer and Co-Founder at CyberSaint, where he leads product innovation and development. His experience as a Harvard-trained economist, IT risk and compliance consultant, and his rapid exposure to Cybersecurity led him to seek out CISOs, CIOs, and Boards of Directors at global organizations to pursue the answer to the question – how can cyber be managed, measured, and understood like any other business function? Padraic’s current activity spans working directly with organizations from public agencies to private companies across the globe to understand how to measure cyber risk, especially amidst the global pandemic which is fueling massive digital transformation projects around the world. Padraic was a key member of the group providing feedback on the NIST Cybersecurity Framework during its development, and is an expert in regulatory standards both in security and privacy, including the NIST Risk Management and NIST Privacy Frameworks. An expert in Artificial Intelligence (AI) and economic modeling, Padraic works with members of the Global 500 to research and deploy risk quantification, risk intelligence gathering, and risk reporting and communication strategies. Padraic also holds a patent entitled, “System And Method for Monitoring And Grading A Cybersecurity Framework” which has inspired much of his work on cohesive IT and cyber risk management approaches.
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