Cyber - Directors & Officers

Cyber - Directors & Officers

With data breaches becoming more common and more high profiled, there is a need for increased diligence from directors concerning cyber security, to prevent claims arising. This means that exposures and cyber risk management must become their responsibility.
Although such claims have yet to materialise in the UK, directors across the Atlantic are already facing legal action stemming from oversights in their company’s cyber security. A series of large-scale data breaches, along with concerns over increasingly sophisticated malware attacks, has brought this growing problem into sharp focus.
However, no company is too small to face a cyber-attack, and the increasing regularity of such incidents means that as cyber breaches become more common, claims against directors, following losses suffered by the company, will no doubt increase.
Need for better cyber oversight
Directors should adapt their protocols to provide a more complete oversight of cyber security, otherwise directors could be exposed to breaches of duty, privacy charges, failure to adhere to corporate legislation, claims of misleading conduct and the prospect of criminal proceedings.
Directors, by law, must also exercise reasonable skill and care in performing their duties, which in cyber terms means assessing data risk, ensuring IT security is adequate, training staff in their duties and having plans in place to deal with a data breach.
The Ponemon Institute calculated that the average cost to a company of a data breach in 2014 was $3.5 million, up 15% from 2013*. Cyber risk management is an issue that should be at the heart of boardroom discussions, and not one that is solely an IT department problem.
What next?
Cyber risk management is an issue that should be at the heart of all businesses, and not one that is solely an IT department problem. Give us a call today to learn more on how we can help protect you.
01789 761 660

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