Building a Quantum-Safe Enterprise – Governance, Risk, and Compliance

Part 4 of a Bridge Connect Series on Quantum Communications

Introduction – Why Quantum Safety Is a Boardroom Issue

For decades, encryption has been a technical topic delegated to IT teams and CISOs. But the looming threat of quantum computers has elevated it to a governance and fiduciary responsibility.

Within the next 5–10 years, quantum machines may be able to break RSA and ECC encryption - the backbone of global digital security. Even before that day arrives, adversaries are already harvesting encrypted traffic (“store now, decrypt later”), creating a ticking time bomb for intellectual property, financial data, and personal information.

Boards cannot treat this as a distant horizon issue. Regulators, investors, and customers are beginning to demand proof of quantum readiness. This article provides a roadmap for directors and executives: how to understand the risk, plan the transition, and build a quantum-safe enterprise.

Part 1: The Nature of the Quantum Threat

What Quantum Computers Will Break

• RSA and ECC: Widely used for secure web traffic (TLS), VPNs, and digital signatures.

• PKI Infrastructure: Certificate authorities rely on algorithms vulnerable to quantum attack.

• Blockchain Signatures: Many cryptocurrencies could be compromised if they fail to migrate.

The “Harvest Now, Decrypt Later” Problem

Attackers are already capturing encrypted traffic, intending to decrypt it once quantum computers become available. This creates retroactive risk: data stolen today could be compromised years later. Boards must therefore view quantum risk as present, not future.

Part 2: Governance Responsibilities

Fiduciary Duty

Directors have a duty of care to anticipate foreseeable risks. Quantum decryption is now considered a foreseeable threat by national security agencies, including NIST (US), BSI (Germany), and the UK’s NCSC.

Regulatory Compliance

Emerging regulations may require quantum-safe roadmaps:

• NIS2 Directive (EU): Will likely mandate quantum readiness for critical infrastructure.

• SEC Cyber Disclosure Rules (US): Quantum risk must be reported as material if unaddressed.

Investor Expectations

ESG and risk-conscious investors increasingly expect cyber risk to be addressed at the board level. Quantum preparedness is becoming a test of good governance.

Part 3: Building a Quantum Risk Assessment

Boards should commission a comprehensive risk assessment, covering:

1. Crypto Inventory: Identify all systems relying on vulnerable algorithms (RSA, ECC).

2. Criticality Mapping: Rank systems by sensitivity (e.g., customer data, IP, payments).

3. Threat Horizon: Estimate timelines for quantum impact relevant to your sector.

4. Risk Appetite: Define acceptable levels of residual risk.

This assessment should be updated annually and integrated into enterprise risk management (ERM).

Part 4: The Roadmap to a Quantum-Safe Enterprise

Step 1: Awareness and Education

• Train directors and executives in quantum risk basics.

• Include quantum as a standing agenda item in cyber risk committees.

Step 2: Post-Quantum Cryptography (PQC) Migration

• Begin migration to algorithms recommended by NIST’s PQC standardisation programme (finalised in 2024).

• Ensure vendor roadmaps align with PQC support (routers, VPNs, cloud providers).

• Mandate PQC compliance in new procurement contracts.

Step 3: Selective QKD Pilots

• For ultra-sensitive links (e.g., data centre interconnect, central bank connections), consider QKD pilots.

• Evaluate integration with existing key management infrastructure.

Step 4: Integration and Testing

• Conduct interoperability tests with hybrid PQC/QKD systems.

• Develop contingency plans for phased migration to minimise disruption.

Step 5: Governance and Monitoring

• Establish KPIs for quantum readiness (e.g., percentage of crypto inventory migrated).

• Report progress to the board quarterly.

Part 5: Talent, Culture, and Capability

Quantum-Literate Leadership

Boards should insist on quantum literacy at executive and CISO level. Training and recruitment may be required to fill gaps.

Partnerships and Ecosystems

No enterprise will tackle this alone. Boards should:

• Join industry consortia (ETSI, GSMA, ITU-T).

• Collaborate with regulators and standards bodies.

• Explore partnerships with telcos and quantum startups.

Part 6: Standards and Interoperability

NIST PQC Standards

NIST’s chosen algorithms (e.g., CRYSTALS-Kyber, Dilithium) are becoming global benchmarks.

ETSI ISG-QKD and ISO Work

These groups are defining frameworks for QKD integration and certification.

Boards should monitor these developments to avoid vendor lock-in and ensure compliance.

Part 7: Economics – Cost of Action vs Inaction

Cost of Action

• PQC migration projects typically run in line with software refresh cycles.

• QKD pilots may require dedicated fibre or satellite links, costing millions.

Cost of Inaction

• Regulatory fines for breaches.

• Loss of customer trust and market share.

• Litigation from investors or customers alleging negligence.

Boards should treat quantum readiness as insurance: the cost is significant, but the cost of failure could be existential.

Part 8: Industry Case Studies

Banking

Central banks and clearing houses are beginning PQC migration and piloting QKD for interbank connections.

Telecoms

Telcos are adding QKD services to differentiate enterprise offerings, often bundled with 5G or cloud connectivity.

Pharma and IP-Intensive Industries

Companies handling highly sensitive R&D data are prioritising PQC and monitoring QKD trials.

Board-Level Conclusion – From Awareness to Action

Quantum risk is not a technical curiosity - it is a governance challenge. Boards that fail to act may face regulatory penalties, litigation, and reputational damage.

The path forward is clear:

• Educate leadership. Make quantum risk a board-level issue.

• Migrate to PQC. Begin now to avoid panic upgrades later.

• Pilot QKD selectively. Test where the risk of compromise is existential.

• Monitor and govern. Set KPIs and review progress quarterly.

The enterprises that succeed will be those that balance pragmatism with foresight - adopting cost-effective PQC broadly while piloting quantum communications where justified. Boards that act today will not only secure their organisations against tomorrow’s threats but also position themselves as leaders in trust, resilience, and digital confidence.