Why CISOs Must Stay Focused Amid Regulatory Chaos

2025-01-22

In the ever-evolving world of cybersecurity, the role of the Chief Information Security Officer (CISO) has never been more critical. As regulatory landscapes shift and new rules emerge, CISOs must navigate a complex environment while staying true to their core mission: safeguarding their organizations from relentless and evolving threats.

The Regulatory Tsunami

The cybersecurity industry is no stranger to change, but recent developments have added layers of complexity. The Securities and Exchange Commission (SEC) introduced new rules requiring public companies to report material cyber incidents within four business days and disclose their cybersecurity risk management strategies. These rules, effective since December 2023, aim to enhance transparency but have also sparked anxiety among security professionals.

The SEC’s lawsuit against SolarWinds and its CISO further intensified these concerns. Although a federal judge dismissed most of the case in July, the incident underscored the heightened scrutiny CISOs now face. However, the ruling also reaffirmed a critical truth: holding CISOs personally liable for cyberattacks does not improve security. Cybersecurity is a collective responsibility, and CISOs often lack full visibility into an organization’s attack surface, making complete risk assessments challenging.

Regulations like those from the Food and Drug Administration (FDA) have shown how legislation can empower CISOs to secure resources and strengthen defenses. The SEC’s rules present a similar opportunity for CISOs to play a more integral role in organizational decision-making.

A Collective Responsibility

CISOs are truth-tellers, akin to internal auditors who assess risks and recommend improvements. However, their influence is limited without full visibility into an organization’s technology stack. Many CISOs oversee IT systems but not the products a company sells, which can be critical vulnerabilities in data-dependent systems like medical devices or IoT endpoints.

Ultimately, the strength of a company’s defenses depends on the board and top executives. In the event of a breach, it is these leaders who determine the materiality of an incident, while the CISO focuses on response and forensic analysis to prevent future attacks.

The Chevron Decision: A New Layer of Complexity

The Supreme Court’s June 2024 decision to overturn the Chevron doctrine has added another layer of uncertainty. Previously, courts deferred to federal agencies’ interpretations of ambiguous statutes. Now, agencies like the SEC no longer have this automatic deference, creating potential challenges for CISOs navigating the regulatory landscape.

Despite these changes, the CISO’s mission remains unchanged: protecting their organization in a world of constant threats. This requires clear thinking, resilience, and the ability to stay focused amid chaos.

What Undercode Say:

The evolving regulatory environment presents both challenges and opportunities for CISOs. On one hand, increased scrutiny and liability concerns can create pressure, but on the other, new regulations offer a chance to elevate the role of the CISO within organizations.

The SEC’s rules, while demanding, encourage greater transparency and accountability, which can lead to stronger cybersecurity practices. However, the dismissal of the SolarWinds case highlights the importance of collaboration and shared responsibility. CISOs cannot bear the burden of cybersecurity alone; they need the support of boards, executives, and cross-functional teams to build robust defenses.

The overturning of the Chevron doctrine introduces uncertainty, but it also underscores the need for CISOs to stay informed and adaptable. As regulatory interpretations become less predictable, CISOs must rely on their expertise and strategic thinking to navigate this complex landscape.

Ultimately, the key to success lies in maintaining a clear focus on the core mission: protecting the organization. By staying calm, carrying on, and fostering collaboration, CISOs can continue to lead their organizations through the chaos of regulatory change and emerging threats.

In a world where the stakes are higher than ever, the CISO’s role is not just about managing risk—it’s about inspiring confidence and resilience in the face of uncertainty.