Navigating the U.S. Cybersecurity Landscape: A Guide for Board Members


In today’s rapidly evolving digital age, data protection and cybersecurity have emerged as paramount concerns for businesses across the U.S. As board members, understanding the regulatory landscape and its implications is no longer optional—it’s essential. Here’s a concise guide to the key U.S.-based legal and regulatory cybersecurity frameworks you need to know:

1. California Consumer Privacy Act (CCPA) & California Privacy Rights Act (CPRA)

The Essentials: These California-centric regulations bestow residents with rights reminiscent of Europe’s GDPR, addressing their ability to access, delete, and opt out of data sales. Why It Matters: Fines can ascend to $7,500 per intentional violation. With the CPRA’s dedicated enforcement agency, we can anticipate even stricter compliance measures ahead.

2. Federal Trade Commission Act (FTC Act – Section 5)

The Essentials: Section 5 of the FTC Act, under the purview of the Federal Trade Commission, combats deceptive and unfair practices, including those connected to cybersecurity and data handling. Why It Matters: Violations can culminate in severe financial penalties. The $5 billion fine Facebook faced in 2019 serves as a stark reminder of the scale and seriousness of such breaches.

cybersecurity for the board

3. NYDFS Cybersecurity Regulation

The Essentials: If you’re in the financial services sector and operate in New York, this regulation demands a robust cybersecurity program to shield consumers’ private data. Why It Matters: Beyond financial penalties, falling afoul of these rules can inflict lasting damage on a firm’s reputation, especially given its rigorous standards.

4. Cybersecurity Maturity Model Certification (CMMC)

The Essentials: A unique requirement targeting defense contractors, the CMMC seeks to guarantee that contractors uphold the security of sensitive defense-related information. Why It Matters: Failure to meet CMMC standards? That could mean an inability to work with the Department of Defense—a potential major loss of revenue.

5. Children’s Online Privacy Protection Act (COPPA)

The Essentials: COPPA sets requirements for websites or online platforms catering to children under 13. Why It Matters: With fines extending into the millions, the FTC’s rigorous enforcement of COPPA highlights the critical importance of adhering to child-focused data protection measures.

6. Health Insurance Portability and Accountability Act (HIPAA)

The Essentials: Primarily targeting the healthcare sector, HIPAA mandates strict protection standards for patient health data. Why It Matters: Violations can result in hefty fines. In 2020 alone, settlements reached millions of dollars for some HIPAA cases, underscoring the magnitude of potential financial repercussions.


For board members steering businesses in the U.S., the message is clear: Cybersecurity isn’t just an IT concern—it’s a governance imperative. Regulatory compliance forms the backbone of organizational trust and credibility. By acquainting oneself with these frameworks, board members can foster proactive strategies, minimizing risk, and ensuring the company’s longevity and reputation in a digital-first world.


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