Cyber IT Risk Wake Up Time for Board Members!

06 February 2015 Internet, IT & e-Discovery Blog Blog
Authors: Peter Vogel

A former SEC Chair spoke at a Directors & Officers (D&O) insurance conference and said board members “should be knowledgeable about data inventories, where data is located and if it is protected, and use third-party services to test its safety” as reported by BusinessInsurance.com.  Mary L. Schapiro (SEC chairman from 2009-2012) currently serves on the board of General Electric and discussed cyber risks during her keynote address at the 2015 Professional Liability Underwriting Society D&O Symposium in New York where she stated that “boards really need to drive management on this issue” because of the potential fallout from cyber-related losses.

Ms. Schapiro “also said there now is pressure on Capitol Hill to codify the SEC’s guidance on companies’ disclosure of cyber threats, which was issued in 2011.”

As cyber intrusions continue to escalate it’s no surprise that Ms. Schapiro made these comments.

This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.

Authors

Related Services