How closely is the board paying attention to cyber risks?

Board members should not expect a free pass. The reputation damage and soft costs from a data breach can be immeasurable

Board members can face liability, either for taking an action or failing to take action. As business becomes increasingly driven by technology on all levels, corporate board members are increasingly at risk because of their duty to exercise oversight and monitor all aspects of a company’s technological operations. This includes everything from how electronic information is stored, the company’s IT operations, privacy issues, the protection of assets in digital form, and the company’s day-to-day technology processes.

After all, at the first whiff of a problem, prosecutors and regulators, as well as shareholders in some cases, and others, will all ask the same question: “Who is responsible?” And regardless of who’s to blame, the beginning and the end of the inquiry will lie with the board.

Contributing Author

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Steven P. Blonder

Steven P. Blonder is a principal in the Litigation and Dispute Resolution practice group at Chicago-based Much Shelist. His practice is primarily focused in the...

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