Cyber Risk: Are Boards the New “Target”?

Publisher: CFO
Authors: Kevin Kalinich and Michael Becker

According to the Consumer Bankers Association, the recent Target data breach has costs banks more than $200 million. For any public company, a large data breach, such as the Target hack, could be material enough to warrant the filing of a Form 8-K.

On top of the dozens of claims against Target, the board of directors has become a target in the form of shareholder class action litigation – an action taken when shareholders allege that the board of directors has not satisfied its duty of care to manage such exposures.

As a protection against allegations of wrongdoing, Directors and officers can purchase Directors and officers liability insurance policies. However, proactive measures can be taken in order to exercise due diligence in regards to data protection. For full guidance on steps to help maintain financial and brand success by preventing data breaches, please read the full article here.

Give us your thoughts on how to proactively prevent data loss and to mitigate the effects of security breaches if they occur.