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Why Untangling the CISO from IT Can Improve Governance and Security Outcomes
Roles and responsibilities aren't always clearly defined at the executive level. There's often overlap across certain key initiatives and teams, which can lead to blurred lines or confusion among stakeholders. This is particularly common across CIO and CISO roles.
Traditionally at most organizations, the CISO position was created and nested under the IT department's umbrella, with the CISO reporting to the CIO. This started to shift in recent years, as the responsibilities of the CISO expanded in parallel with the increasing complexity of security risks and the cyber threat landscape. Information security professionals are now squarely accountable for protecting their organizations from costly data breaches — estimated to cost an average of $8.19 million per incident — and managing security staffing and resources that represent a $173 billion market.
Still, despite the fact that the CISO's duties are growing in scope and importance, and data protection has become a board-level concern, many security leaders still do not have a direct line to the CEO. One study from CIO and CSO magazines found that 60% of CISOs do not report to the CEO directly, and a Ponemon report found that 40% of CISOs do not have a direct seat at the leadership table, even in the event of a security incident.
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Counsel should include in its analysis of a case the taxability of the anticipated and sought after damages as the tax effect could be substantial.