Discover this podcast and so much more

Podcasts are free to enjoy without a subscription. We also offer ebooks, audiobooks, and so much more for just $11.99/month.

Bob Zukis, CEO of the Digital Directors Network: On Cybersecurity in the Boardroom.

Bob Zukis, CEO of the Digital Directors Network: On Cybersecurity in the Boardroom.

FromBoardroom Governance with Evan Epstein


Bob Zukis, CEO of the Digital Directors Network: On Cybersecurity in the Boardroom.

FromBoardroom Governance with Evan Epstein

ratings:
Length:
54 minutes
Released:
Dec 19, 2022
Format:
Podcast episode

Description

0:00 -- Intro.1:38 -- Start of interview.2:06 -- Bob's "origin story". His professional career with PwC and management consulting globally.4:31 -- On globalization, China and current geopolitical tensions.6:14 -- His career post PwC. He led a venture-backed SaaS company and became an Adjunct Professor at USC.7:28 -- About the Digital Directors Network, focused on digital and cybersecurity in the boardroom. "It's an educational/training, advocacy and advisory platform."11:40 -- The value of digital and cybersecurity in the boardroom.13:35 -- The background and scope of his book "Digital and Cybersecurity Governance Around the World."15:38 -- The digital value business case for corporate boards.17:43 -- Some of the digital and cyber governance leading practices. "It's usually around three areas: 1) Who's on the board, 2) how is the board structured around these issues, and 3) how does the board understand risk."18:32 -- How to define a digitally savvy director. His "director framework" (8 domains).  Reference to MIT research that found that "companies with digitally savvy boards had at least 34% higher performance on market cap growth, revenue growth, and ROA." Critical mass of three digitally savvy directors on one board.21:42 -- Where to place cybersecurity in board committees. His recommendation: a separate technology and cybersecurity committee (cites examples of GM, WalMart, FedEx, Hasbro). He questions its placement in audit committees.24:17 -- His thoughts on quotas for boards (on cybersecurity expertise). "Quota is such a dirty word [in governance circles] but they work and force the issue." "Gary Gensler was a senior advisor to Senator Paul Sarbanes, so the Statement on Proposal for Mandatory Cybersecurity Disclosures comes directly from his SOX days (he knows it works, it's a comply or explain provision)."27:05 -- On international vs US boardroom cybersecurity practices. Skills, structure, scope.30:06 -- On some of the techniques employed by hackers to infiltrate corporate systems. 32:16 -- On state and government level vs private corporate cybersecurity practices and collaboration.33:59 -- Directors' oversight duties on cybersecurity and cyber insurance. "Our estimate is that only 9-10% of the economic exposure to cyber risk has been accepted or transferred to the cyber insurance risk industry [the company is on the hook for ~90% of the financial impact of this threat]." Individual liability of directors for cyber breaches (standard is high in the US). Del. Court Dismisses Cybersecurity-Related Oversight Claim Against SolarWinds Board.38:19 -- Cybersecurity experts in the boardroom: "In US boards: 10-14%, it's inching up but it should be 100%" "For $315k per year [avg comp of S&P500 director] any corporate board can materially improve a critical control point in their cybersecurity system by putting a cyber expert on the board. It's a no-brainer, a slam dunk."40:43 -- The "unfair" bias against CIOs and CISOs in the boardroom (as one-trick ponies).43:49 -- "Digital and cybersecurity is part of the G in ESG, and we have not made nearly as much traction as some of the E and S folks have, so we still have some work to do."45:05 -- "If you're a corporate director you should understand the skills, structure and scope of risk oversight that you have to address to govern these [digital and cybersecurity] issues."45:57 - The books that have greatly influenced his life: The History of Pi, by Petr Beckman (1970)The Nature of Technology, by W. Brian Author (2010)47:45 - His mentors, and what he learned from them: his teams and clients.49:02 - His favorite city (and why): Hong Kong.50:20 -  Quotes he thinks of often or live his life by: Robert's Frost The Road Not Taken.  50:55 - An unusual habit or an absurd thing that she loves: "I'm a workout maniac."51:50 - The living person he most admires: Volodymyr Zelensky.Bob Zukis__ You can follow Bob on social media at:Email: bob@digitaldirectors.networkWebsite: www.digitaldirectors.net
Released:
Dec 19, 2022
Format:
Podcast episode

Titles in the series (100)

In-depth interview podcast with leading corporate governance experts, including world-class founders, scholars, board members, executives, investors and more. The content is structured as a long-form conversation to explore not only the latest corporate governance trends, but also to get some personal insights from some of the best and brightest minds behind America's boardrooms.