Cybersecurity

Boardroom directors and officers should become familiar with their obligations under updated SEC guidance on data breach disclosures.

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.

Barbara Berlin, a director at PwC’s Governance Insights Center, discusses the impact of what PwC calls the “Essential Eight Technologies” and how boards should be responding.

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.

Every year, Corporate Board Member and Spencer Stuart collaborate to survey directors of publicly traded companies to check their pulse on the challenges and best practices of corporate directorship.

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.