• Corporate Governance in Inusrance: Creating Effective Corporate Governance Mechanisms to Address Cybersecurity Threats
  • November 23, 2017 | Author: Christian Brito
  • Law Firm: Greenberg Traurig, LLP - Fort Lauderdale Office
  • Cybersecurity attacks continue to plague companies around the globe. Recent litigation and regulatory action have demonstrated that the responsibility for maintaining a company’s cybersecurity rests with the board of directors. In the wake of recent cyber-attacks, shareholders have filed suit against board members, alleging that their failure to take steps to prevent a data breach violated board members’ fiduciary duty of care. Regulators have also taken action against companies affected by data breaches, reminding directors that cybersecurity is not merely a question for IT personnel, but rather a high priority issue that must be addressed from the top-down. Rather than being compelled to act through litigation or regulatory action, boards should be proactive and create company wide cybersecurity protocols that would regularly test the company’s cybersecurity systems, train its employees in cyber risk management, establish a data breach response plan, and manage relationships with third party service providers.