I recently posted about how corporate general counsel now view cybersecurity as a top 3 concern. At this rate, it will soon be their #1 concern. A recent article in Corporate Counsel gives several reasons for why this problem will only continue to increase in volume, expense, and overall risk to companies:
- Companies continue to move more infrastructure online
- The annual cost of data breaches is projected to rise to $2.1 trillion by 2019
- Cybercriminals are more often hacking for profit instead of for “causes” as with hacktivism
- Nearly 60 percent of data breaches in 2015 are anticipated to be in North America
- The average cost of a data breach is projected to exceed $150 million by 2020
- Companies are developing quantum computers with so much power they will render ineffective all currently known defenses
Not only should corporate general counsel be concerned about cybersecurity, but so too should companies’ officers and directors because there is a growing trend toward liability for them as well.