Proposed Senate Cybersecurity Bill And The Challenges Facing Corporate Boards

Recent high profile data breaches have led to increased focus on corporate boards' responsibilities in managing cybersecurity. Although the breach at Target may have received the most attention, a recent director and officer suit against Home Depot demonstrates the expanding risks faced by corporate officers and directors. Following a September 2014 cyber-attack against Home Depot that compromised approximately 56 million credit cards, in September 2015, a shareholder sued twelve of Home Depot's directors and officers for failing to ensure that the company reasonably protected its customer's personal and financial information. See Complaint, Bennek v. Ackerman et al., No. 1:15-cv-2999 (N.D. Ga. Sept. 2, 2015). Suits like the one against Home Depot can be expected to become more common and are only the start of the pressure that will be exerted on directors and officers to address cybersecurity.