Be Better Prepared to Handle Cyber Threats as a Director

Two common questions that I get asked are:

1. Is cyber risk really a big deal, or is it Y2K all over again; and
2. How can a director get smart on the issues?

Answering the first question: yes, the risk is a big deal. According to the IBM "2015 Cost of a Data Breach" study, the average cost of a data breach to companies in the United States is $6.5 million.

Forty-nine percent of data breaches studied involved a malicious or criminal attack. This type of data breach is the most costly to businesses at an average of $230 per compromised record, versus the mean of $217 for other types of data breaches.

This is, without a doubt, a board-level issue–especially for public companies and companies contemplating an IPO.

Directors who are convinced that cyber security is a big deal but feel a little behind the eight ball on the issues might consider attending the upcoming event on cyber security at the Stanford Law School on November 13, 2015.

"Cyber Day: Cybersecurity for Directors and C-Level Executives" is a one-day event designed for those who have minimal expertise in the matter but who want to become more knowledgeable about the issues around cyber security, such as:

• Legal matters
• Public policy
• Risk management
• Technical topics

Lauri Floresca, co-chair of the cyber liability team at Woodruff Sawyer, is a featured speaker. Woodruff Sawyer clients can register with a 10 percent discount using code: WOODRUFF10

Robert Mueller, former director of the FBI, will deliver the keynote address. The forum is co-sponsored by the Stanford Cyber Initiative, which also hosted President Barack Obama for the White House Summit on Cybersecurity and Consumer Protection earlier this year.

(Full disclosure: I’m on the advisory board of the Stanford Rock Center for Corporate Governance, the primary organizer and sponsor of this event.)

To prep for the event, it’s worth checking out a few earlier posts my colleague Lauri has written on cyber:

• Cyber 101: Network and Business Interruption
• Cyber 101: Cloud Computing and Liability
• Cyber 101: The Basics of Cyber Coverage
• Cyber 101: Obtaining Cyber Insurance - The Process

Hope to see you at Stanford on November 13.

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The views expressed in this blog are solely those of the author. This blog should not be taken as insurance or legal advice for your particular situation. Questions? Comments? Concerns? Email: phuskins@woodruffsawyer.com.