Redefining cyber readiness: From perimeter defence to Board-level resilience
19 January 2026
19 January 2026
Cyber risk is no longer just a technical issue, it is a strategic and regulatory imperative. The era of viewing cyber solely through the lens of data breaches is over. While safeguarding personal and sensitive data remains critical, 2025 has underscored a new reality: cyber disruption can destabilise balance sheets, fracture supply chains, destroy consumer confidence, and even dent GDP. The Bank of England’s recent Monetary Policy Report cited the Jaguar Land Rover cyberattack as a contributing factor to economic slowdown. For Boards, the message is clear: cyber resilience is now a core business risk, not an IT problem.
Regulatory scrutiny and enforcement actions are accelerating worldwide. Global authorities are shifting from privacy compliance to mandating broader operational resilience, recovery planning, and supply chain security. Directors should expect heightened scrutiny of governance practices, including personal liability for failing to meet cyber standards. Investigations increasingly involve multi-year lookbacks across audits, Board reporting, remediation programmes, control testing, and resource allocation. The tolerance for basic security lapses is evaporating; regulators are signalling that known vulnerabilities and poor cyber hygiene are indefensible.
Boards cannot afford to be reactive, and should look at practical upskilling across a range of cyber domains. Practical steps include embedding holistic cyber expertise at the Board level, stress-testing recovery plans for worst-case scenarios, and ensuring operational resilience frameworks are robust and regularly validated. Cyber governance must be integrated across legal, risk, compliance, and other strategic functions rather than siloed within technical teams.
Ultimately, Boards need to demonstrate that “reasonable steps” and “practical measures” are not aspirational but clearly evidenced. A defendable assessment of cyber readiness should be a standing agenda item in 2026 and beyond. Those that treat cyber as a strategic enabler rather than a compliance burden, will not only withstand disruption but also build trust, resilience, and a competitive advantage in an increasingly volatile digital economy.
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.