Compliance Stuff

  Key Points Companies should critically a ssess the strength of their cybersecurity defenses against evolving threats, including third parties’ vulnerabilities. Recent changes in regulatory expectations for cybersecurity have underscored the need for board oversight of this potential risk. Many boards are now revisiting whether and how to assign cybersecurity oversight to a board committee. A well-designed governance framework for managing cybersecurity risks can help minimize the legal risks companies and directors will face after an attack. Companies that implement policies and procedures for rapidly reporting, escalating and thoroughly documenting the board’s oversight of cybersecurity issues will be well positioned to defend against post-attack litigation. Cyber threats continue to grow as a result of increased digitization, widespread use of cloud computing, advanced connectivity and artificial intelligence (AI) , requiring boards of directors across all sectors to focus mor...

  Over the past decade, technological innovations have quickly transformed how companies operate their IT infrastructure. T raditional on-site servers and hardware have often been replaced or supplemented by off-site solutions such as cloud computing, SaaS (Software-as-a-Service), virtualized servers, or “Bring Your Own Device” (BYOD) programs. These developments allow a business’s IT operations to be spread across a complex IT ecosystem rather than confined to physical devices located on its premises. They have the potential to reduce costs while expanding the computing capabilities at a company’s fingertips. But they don’t come without risk. The ever-evolving nature of IT systems can create disconnects between the core features on which policyholders rely to operate their businesses—and that they seek to insure against cyber risks—and the defined terms used within their cyber policy’s coverage grant(s). While businesses may expect their cyber insurance policies to cover the ful...