Rising CISO Liability: How Organizations Are Responding

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The Growing Burden on CISOs

A recent study by cloud service provider Fastly reveals that 93% of organizations have revised policies over the past year to tackle increasing personal liability risks for Chief Information Security Officers (CISOs). This shift is largely driven by regulatory changes and high-profile legal cases, particularly in the U.S.

Key findings from the research include:

  • 41% of organizations have increased CISO involvement in board-level strategic decisions.
  • 38% are under greater regulatory scrutiny regarding security disclosures.
  • The same percentage has bolstered legal support, including purchasing liability insurance for cybersecurity personnel.

This transformation follows a regulatory push to hold CISOs personally accountable for security failures. Notable cases include the conviction of former Uber CISO Joe Sullivan in 2022 and the SEC’s charges against SolarWinds and its CISO, Tim Brown, in 2023. These cases highlight the growing risks CISOs face as they navigate cybersecurity responsibilities.

Need for Clearer Regulatory Standards

While the increased focus on liability disclosure is a step forward, many companies prioritize legal risk mitigation over genuine security improvements. Experts argue that true accountability requires stronger, well-defined regulatory standards to differentiate between unavoidable breaches and those caused by negligence.

Fastly’s study surveyed 1,800 IT decision-makers across the Americas, Europe, Asia-Pacific, and Japan. It found that 46% of respondents believe there is a lack of clarity on who should be held accountable for cybersecurity incidents.

The report also suggests that accountability is expanding beyond security teams—roles such as application developers, platform engineers, and site reliability engineers are increasingly expected to share cybersecurity responsibilities.

What Undercode Says:

1. CISO Accountability: A Legal Minefield

Regulatory bodies are tightening their grip on cybersecurity governance, yet uncertainty remains over what constitutes negligence versus an inevitable breach. The SEC’s actions against SolarWinds and the Uber case set a dangerous precedent—CISOs could now face legal risks for decisions made under corporate pressure, even when external threats are responsible for incidents.

2. Board-Level Involvement: A Double-Edged Sword

The increase in board-level participation (41%) suggests companies are taking cybersecurity seriously. However, this also exposes CISOs to greater scrutiny and liability. If a security failure occurs, will the board support them, or will they become scapegoats? Without well-defined legal protections, CISOs may be pressured into making legally risky decisions.

3. Legal Protection vs. Meaningful Security Change

While liability insurance and legal support provide some protection, they don’t solve the root problem: vague regulatory expectations. Organizations should focus on proactive security measures, such as:

– Stronger internal security protocols to minimize risks.

  • Clearer regulatory guidance distinguishing negligence from unavoidable breaches.
  • Balanced accountability—spreading responsibility across IT and leadership teams.

4. Shifting Responsibility Beyond CISOs

Fastly’s findings indicate a broader distribution of security accountability. While this reduces pressure on CISOs, it also raises concerns: Are non-security professionals adequately trained to handle security risks? A shared responsibility model is ideal, but only if it’s backed by clear policies and adequate cybersecurity training.

5. Regulatory Overreach vs. Necessary Enforcement

Stronger regulations are needed, but over-regulation could stifle security leadership. CISOs may hesitate to take decisive action if they fear legal consequences for perceived missteps. Instead of punitive measures, regulators should focus on:

– Providing clearer security frameworks for organizations.

  • Encouraging industry-wide best practices rather than relying on case-by-case legal action.
  • Recognizing cybersecurity as a business-wide responsibility, not just a CISO issue.
  1. The Future of CISO Liability: A Turning Point

With regulatory bodies increasing scrutiny, the role of the CISO is at a crossroads. Will companies invest in better security standards, or will they continue to prioritize legal defense strategies? The coming years will determine whether this shift leads to true security improvements or simply more corporate risk management tactics.

Fact Checker Results

  • Regulatory scrutiny on CISOs has intensified, with landmark legal cases shaping future expectations.
  • Many organizations are prioritizing legal protection over meaningful cybersecurity improvements.
  • The shift in accountability is expanding beyond security teams, but without clear frameworks, confusion persists.

References:

Reported By: https://www.infosecurity-magazine.com/news/ciso-liability-risks-policy-changes/
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