03/02/2013 12:48:07 PM EST
Cybersecurity Will Be Hot Button Issue For Affected Companies
I am sure many readers were disturbed as I was by the February 19, 2012 New York Times article reporting that a Chinese army unit apparently has been executing a concentrated cyber-hacking program targeting U.S. companies and critical U.S. infrastructure. (The report of consulting firm Mandiant that was the basis of the Times article can be found here.) This story is part of a rising tide of media reports about cybersecurity risks. Indeed, concerns about these kinds of activities led President Obama's February 12, 2013 Executive Order entitled "Improving Critical Infrastructure Cybersecurity" (here).
Although the recent disclosures are quite troubling, it is not news that cybersecurity risks represent a significant concern for just about every company involved in the current economy. Prior posts on this site (for example, here) have detailed the liability exposures that these risks represent for all of these companies and for their directors and officers. But while these issues are not new, it really seems that as we have headed into 2013, the volume on these issues has been turned up.. It now seems clear that cybersecurity is going to be one of the hot button issues for the foreseeable future, both in the media and for the affected companies.
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Read other items of interest from the world of directors & officers liability, with occasional commentary, at the D&O Diary, a blog by Kevin LaCroix.
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