In today’s digital economy, cyber security is no longer an IT issue – it’s a core business risk that every owner, director, and manager must take seriously. Recent high-profile breachers and new regulatory reforms have made it clear: Strong cyber governance is essential for business resilience, reputation, and compliance.
Why Cyber Security Governance Matters
Australian businesses, from SMEs to large corporations and not-for-profits, are facing an unprecedented wave of cyber threats. The average cost of a cyber incident for small businesses has risen sharply, and regulatory expectations and higher than ever. The Australian Government’s 2023-2030 Cyber Security Strategy, along with new laws like the Cyber Security Act 2024 and updates to the Privacy Act, mean that business leaders must be proactive, not reactive, in managing cyber risks.
The Five Principles of Cyber Security Governance
Drawing on key materials from the Australian Institute of Company Directors (ACID) and the Cyber Security Cooperative Research Centre (CSCRC), here are five practical principles every business owner should adopt:
- Set Clear Roles and Responsivities
Document who is responsible for cyber security in your business. Appoint a “cyber champion” or leader, and ensure directors or a board subcommittee have oversight. Identify your key digital providers and understand their cyber controls
- Develop, Implement, and Evolve a Comprehensive Cyber Strategy
A robust cyber strategy can help identify opportunities for the organisation to build cyber resilience. Identify your critical data and systems, limit access, and regularly review controls. Consider whether using reputable external providers will enhance your resilience. Regularly train staff and promote strong email hygiene
- Embed Cyber Security in Existing Risk Management Practices
Cyber risk should be part of your existing risk management framework. Patch and update software, restrict use of USBs and external drives, implement multi-factor authentication, and maintain secure, offline backups. Ensure departing staff lose all access to systems and sensitive data.
- Promote a Culture of Cyber Resilience
Directors should make cyber security training and phishing testing mandatory for all staff and volunteers, communicate regularly about cyber risks and best practices, and incentivise strong cyber hygiene. Appointing ‘cyber security leaders’ within teams can help embed these practices throughout the organisation.
- Plan for Significant Cyber Security Incidents
Prepare a response plan and test it with simulations. Know who will lead your response, how you’ll communicate with stakeholders, and where your backups are stored. Keep offline lists of key contacts and support resources. After an incident, review what happened, support affected staff and customers, and update your plans.
Governing Through a Cyber Crisis
If a cyber crisis hits, boards and owners must be ready to act fast. Key steps include:
- Activate your incident response plan and communicate transparently with staff, customers, and regulators.
- Seek external advice early – legal, technical, and communications support can be critical.
- Focus on recovery and remediation: secure your systems, support affected people, and rebuild trust through honest engagement
- Learn from the incident. Document lessons, update your controls, and share insights with your industry.
Cyber security is an ongoing commitment rather than a fixed goal. By embedding these governance principles into your business, you’ll not only reduce risk but also build trust with customers, partners, and regulators. For more detailed guidance, visit the AICD website or checkout the Governance Principles Checklist for SME and NFP Directors.
