The Imperative for Tech "and" Cyber-Oriented Board Committees in the Cyber Age

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The Vital Link Between Tech Innovation and Cybersecurity on the Corporate Board Agenda

To fortify businesses against cyber threats and pace of tech change associated with digital transformation, there exists a fundamental need for a cogent, strategic, and, most importantly, board-level approach to technology and cybersecurity.

In today?s dynamic business climate, the impact of technology on revenue streams and resilience cannot be overstated. As I advise Board Chairs across industries, a recurring theme surfaces: the pressing need for focused oversight on technology, innovation, and cybersecurity – areas deeply intertwined yet often handled in isolation.

I recommend that modern boards to establish a dedicated technology/innovation and cybersecurity committee within the board structure.

Why is this critical?

New Revenues and Channels

The rapid pace of technological advancements, such as Gen AI, opens up novel revenue opportunities and new revenue channels. At the same time, it increases the attack surface due to customer-facing interactions, ecosystem interactions, and new AI interfaces. Hence, strategic board-level guidance and oversight can ensure these avenues are maximized and safeguarded.

Business Resilience

With cyber threats posing existential risks, it?s no longer feasible to relegate cybersecurity to the backburner of board priorities. Active engagement and cybersecurity oversight is key to business continuity and resilience.

Third-party Risk Management

The complex web of third-party relationships that modern businesses engage in brings about significant risk exposures, particularly in the realm of cybersecurity. This necessitates board-level attention and agility in overseeing potential vulnerabilities.

Board Composition

Boards must diversify their composition to include members with technology expertise and cybersecurity expertise.

• A dynamic board that understands the importance of digital optimization, digital transformation, and integrating technology strategies alongside growth strategies is no longer optional but a necessity. As the digital economy intensifies, boards with a holistic understanding of the cyber domain will not only protect but also enhance their organization's competitive position.
• While traditional financial and business acumen remain vital, the addition of technology-oriented directors equips the board to ask the right questions, understand the nuances of innovation, and effectively gauge the operational risks and rewards that technology decisions entail.

• The establishment of a dedicated technology and cybersecurity committee signifies not just a nod to the imperatives of the day, but a bold stride into uncharted waters. This entails reconstituting the very DNA of the board, engendering a transformation akin to the metamorphosis of the caterpillar into the butterfly.
• An evolved board must include members with not only financial and operational astuteness but also a robust understanding of the digital landscape and a nuanced comprehension of the intricate dance between innovation and risk.
• Boards with a potent technology and cybersecurity committee wield the power to articulate policy that extends the frontiers of the possible. By actively overseeing technology investments, cybersecurity preparedness, and digital governance frameworks, these boards transcend mere compliance to champion competitive advantage and operational agility.

Board Training

To remain agile and informed, boards should also consider regular technology and cybersecurity training for all directors, not just those on the dedicated committee. This continuous education ensures that the entire board remains on the forefront of knowledge in an area that’s constantly evolving.

• Education is the foundation upon which the edifice of tech-savvy governance stands. It is incumbent upon boards to nurture a culture of continuous learning, with routine training programs that equip directors with the knowledge and the lexicon of technology and cybersecurity.
• As we look towards the horizon, the call for tech-fluent board members is more than a trend; it's a strategic imperative that underpins everything from customer trust to operational viability in the digital age.

Looking Beyond Tactical Responses (short-term mindset)

• Embracing this shift does not merely address immediate vulnerabilities but also sets the stage for proactive leadership in innovation and cybersecurity. The goal is to create boards that are not only responsive but predictive, anticipating changes and preparing the organization for a future where technology is inseparably linked to success.
• To transform challenges into strategic opportunities, to mitigate risks while optimizing innovations, and to steer the corporate ship through the technologically turbulent waters—such is the mandate of the technology and cybersecurity committee. The hour has come for boards to not merely recognize the winds of change but to hoist the sails and chart a course for cyber-resilient success.

Conclusion

In a world where a single cyber incident can lay waste to years of corporate progress, the establishment of a technology and cybersecurity committee is more than just a best practice—it is prescience in governance. The future has never appeared as uncertain, nor the present as dynamically intricate, necessitating a governance paradigm that is as adaptive as it is anticipatory.

The mandate is clear: Cybersecurity cannot remain a secondary concern delegated to an audit committee or discussed in silos. It demands the same caliber of attention and expertise as any core business function.

It?s time to refresh boardroom committees and board compositions to stay ahead of new and evolving issues – whether they be cybersecurity challenges, disclosure requisites, social imperatives, or geopolitical tensions.

By proactively adapting board governance to include dedicated technological and cybersecurity oversight, companies can gain strategic advantage and fortify their defensive postures against an increasingly complex threat landscape.

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ABOUT KHWAJA SHAIK

Khwaja Shaik is a Global IT Executive and a Board Member with 25+ years of technology, industry, and board leadership experience. He has held various leadership positions at IBM, Bank of America, and PwC, where he was responsible for driving growth through digital acceleration. Khwaja is recognized globally as an expert on Digital Transformation, AI, Cybersecurity, ESG, and Cultural shifts.

Service to others has been a part of Khwaja’s purpose throughout his career. He believes in creating a better world by integrating a noble purpose with business strategy through multi-stakeholder capitalism.

As one of IBM’s CTOs, Khwaja counsels CEOs, Boards, and Startups on Future-Fit Tech strategy with board priorities, new business models, Risk identification and mitigation, Cyber Risk Oversight, Design Thinking, ESG, and Diversity & Inclusion.

Khwaja is a visionary leader with a proven track record of success in transforming businesses through innovation and digital. He has an innate understanding of how to harness technology to create better customer experiences and future-proof operations.

At Bank of America, he managed risk and infused Fintech and Cloud best practices into the firm’s strategy, saving the company $1.1 billion per year during the 2008 financial crisis. At PwC, he incubated new businesses to grow revenue across multiple economic cycles, reshaping industry and platform operating models— digitizing end-to-end business processes to capture value, and protecting firms from cyberattacks through digital resilience.

Khwaja has a history of leading over $10B in digital business transformations by scaling Agile practices for cost optimization, revenue-generation, and societal transformation imperatives. It includes strategic oversight, risk mitigation, business optimization, digital business models to capture profitable growth, customer lifetime value & competitive advantage to Fortune 500 firms.

Khwaja delivered a modern banking platform and transformed the Omnichannel customer experience through world's largest Contact Center platform, serving 1 billion calls, as part of BofA's M&A (CFC, MBNA, Fleet, etc.) to support the AI-led growth strategy.

Khwaja is one of the most exceptional IBMers appointed, with the rare distinction of IBM Academy of Technology member. Holds many patents serves on IBM’s Invention Board. Khwaja is one of the top 100 leaders elevating corporate purpose, driving AI ethics, privacy, data stewardship, regulatory/compliance and sustainability. He provides the direction of IBM's long-term strategy through ESG.

Khwaja serves on the Museum of Science & History and University of North Florida boards to promote economic equity, social, diversity, and inclusion for the prosperity of all. He teaches emerging tech, systemic risks, cybersecurity, AI ethics, and privacy-by-design efforts at University of North Florida and Competent Boards.

Khwaja is a frequent speaker on Board Practices, Technology, and Cybersecurity at NACD (National Association of Corporate Directors), Competent Boards, American College of Corporate Directors, Boardswell etc.

Khwaja is a Fellow of The Herndon Foundation Board Institute, sponsored by Nasdaq & Atlanta Life. Khwaja is proud to be part of both Ascend Leadership's Pinnacle Aspiring Directors Academy and University of North Carolina at Chapel Hill School of Law's 2023 DDI Board Boot Camp. Khwaja holds an MBA and an Engineering degree. Khwaja lived in India, Middle East, experienced three different cultures, reads too much, doesn’t do enough gardening, married for over 22 years with two remarkable boys.

More details on Khwaja’s career and thought leadership activities could be found via Linkedin, Khwajashaik.com or follow him on Twitter @Khwaja_Shaik

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