A survey of 276 board members by NYSE Governance Services and security firm Veracode found 60 percent of respondents expect an increase in shareholder lawsuits against companies due to cybersecurity issues, while 72 percent expect more cyber-related regulation in the near future.
The survey, entitled Cybersecurity and Corporate Liability: The Board’s View, revealed that 89 percent of respondents believe that businesses should be held liable for breaches if reasonable efforts are not made to secure customer data. Similarly, 90 percent agreed that third-party software providers should be held liable for vulnerabilities identified in their packaged software. Two-thirds of those surveyed said they have already started the process of inserting liability clauses into contracts with third-party providers, while others said plans are in place to start.
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