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ARTICLE · 13 NOVEMBER 2023

Cybersecurity and directors' duties – no room for oversight

Avant Law
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ASIC warns directors to address cyber security risks and comply with relevant disclosure and reporting requirements.

AustraliaCorporate/Commercial Law
Justin Fung
Justin Fung
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Protecting personal information continues to grow as an essential function of businesses everywhere – particularly when it comes to sensitive information in sectors such as health and financial services.

According to the World Economic Forum, cyber risk has been recognised as "the most immediate and financially material sustainability risk that organisations face today". A somewhat stark statement.

The Australian Securities and Investment Commission (ASIC) has recently warned directors that a failure to adequately address cyber security risk or comply with relevant disclosure and reporting requirements may be a breach of their directors' duties.

A timely reminder

This comes off the back of a recent Federal Court of Australia decision in which a business in the financial services sector was found to have breached their license obligations after failing to adequately manage its cybersecurity risks. The business was ordered to pay $750,000 towards ASIC's

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