Effects of IT Governance Measures on Cyber-attack Incidents

Growing incidents of cyber hacking and security breaches of information systems (e.g., Sony, Target, JPMorgan Chase, Home Depot, Cathay Pacific Airlines) threaten the sustainability of many firms and costs the U.S. economy more than $100 billion annually. Business organizations should take these threats seriously and improve their Information Technology (IT) governance and compliance, and cybersecurity risk assessment and controls to effectively prevent cyber hacking and cybersecurity breaches. The existence and persistence of cyber-attacks has elevated expectations for boards of directors to exert greater risk and compliance oversight and for executives to develop and implement managerial strategies for risk management processes to combat cyber-attacks. This paper examines the importance and relevance of IT governance measures including the board oversight function and managerial risk assessment strategies in preventing cyber-attacks. This paper provides policy, practical and research implications.