Cybersecurity is now among the most critical risk-areas for
companies across industries, and boards of directors must be
vigilant in overseeing their companies' cybersecurity efforts.
Failing to do so not only increases risks for the company, but may
also expose board members to personal liability. Developments in
Delaware's Caremark doctrine for breaches of
fiduciary duty have paved a narrow path for plaintiffs to hold
directors liable for failing to adequately address and oversee
their company's cybersecurity and data privacy risks.
Cybersecurity and data privacy risks are high
Data breaches have become ubiquitous and are an ever-present
risk for companies, their customers, employees, and shareholders.
High-profile data breaches affecting major corporations in the last
decade have brought the issue of cybersecurity front and center.
For example, in 2013, Target experienced a massive data breach
affecting over 100 million records, and in 2014 Home Depot
