Akin Gump partners Michelle Reed and Natasha Kohne and counsel Jenny Walters have written the article “Fiduciary Duties of Directors Are Key to Minimizing Cyber Risk,” which was published by NACD Directorship magazine, the publication of the National Association of Corporate Directors.
The article notes that cyber risk is one of the biggest concerns for corporate directors, yet many companies are not properly addressing their vulnerabilities. With that as a starting point, Reed, Kohne and Walters outline the risks awaiting corporate directors, including class action lawsuits and derivative suits against directors and officers themselves.
The best way to protect yourself and your company, the authors write, is to elevate cybersecurity “to an enterprise-level risk management issue” with proper follow-up. This includes taking steps before a breach ever occurs and being prepared to “respond to the regulatory investigations, class actions, and derivative suits that are sure to follow.” With proper due diligence and risk management, they conclude, directors can chip away at the enormous potential liability that exists, “transforming a company’s greatest risk into one of its greatest strengths.”
To read the full article, please click here.