Directors Need to Take Cyber Related Incidents Seriously

Failing to take seriously the threat from cyber related incidents could directly impact on Company Directors, resulting in them facing Court and ultimately placing their personal assets at risk.

Statistics show that there is a direct correlation between damage to brand and loss of income following a data breach with 60% of customers indicating they would move their custom away from a business that had been victim of a cyber-incident that compromised data.

If a cyber-breach occurs, directors may find themselves having to demonstrate in a Court of Law that they had done everything possible take the cyber risk seriously, to protect their company and their customers’ data.

Although a directors and officers (D & O) insurance is likely to cover defence cost and settlements to protect a director personally, companies should not be looking to their directors and officers policies for coverage concerning a cyber-breach.

To protect the company it is important that there is a comprehensive risk management programme in place that is able to identify the potential threats, evaluate the risk and implement robust procedures to eliminate or minimise the risk as much as possible. Cyber liability and privacy breach insurance should also be seriously considered as an added level of reassurance.

For additional information, contact Tony Gibbs on 0118 9165485 or complete one of our enquiry forms.

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Author: Tony Gibbs | October 28th, 2014

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Tony Gibbs
Get in touch:   Reading: 0118 916 5480   London: 020 7036 8767