Cyber risks and the impact on company directors

A series of high-profile data breach incidents have brought into spotlight the increasing regularity and number of incidents, the significant costs associated with such incidents and the potential exposure of boards of directors. In this publication, DLA Piper looks at some of the risks for directors around data breach incidents.

As businesses grow increasingly reliant on computers, the internet and the data that flows on these technologies, they also increasingly expose themselves to the risk of data breaches, being the intentional or unintentional dissemination of stored (and potentially valuable and confidential) information. Although these data breaches can occur unintentionally through poor business practices, many breaches today occur because of pre-meditated cyber attacks.

Cyber attacks (including theft, fraud, sabotage, espionage and hacking) are becoming increasingly diverse and sophisticated. Some indicators of the prevalence of cyber crime include the following statistics…

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