In 2017, high-profile data breaches continued to create major legal issues for some of the country’s largest corporations. In part one of a two-part article, a pair of securities and shareholder litigation lawyers look at what this may mean for officers and directors in terms of liability.
Most boards are cognizant of market, competitive and management risks, but very few boards see cybersecurity as an area in which they need to exercise oversight.
Corporate boards, upon learning of a cybersecurity breach or a deficiency in company practices and procedures, should consider proactively hiring an independent monitor to improve cybersecurity practices.
The concern over cybersecurity and data breaches is understandable given the virulence of such attacks in recent months.
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