Risk

11/6/2015
09:50 AM
Connect Directly
Google+
Twitter
RSS
E-Mail
50%
50%

What The Boardroom Thinks About Data Breach Liability

Most public companies subscribe to cybersecurity insurance of some sort, and 90% say third-party software vendors should be held liable for vulnerabilities in their code.

Most US publicly traded companies now employ cybersecurity insurance to protect them from liability fallout, and 90% believe regulators should hold companies liable for breaches if they didn't properly secure their data.

The heat is also on third-party software vendors: 90% of the companies say those suppliers should be held liable for vulnerabilities found in their software, and 65% have either already or are planning to include liability clauses in their contracts with their software suppliers.

Meanwhile, 91% of companies that have cybersecurity insurance have protection for business interruption and data restoration; 54% for expense reimbursement for fees such as PCI fines, breach notification, and extortion. Some 35% say they want coverage for software coding and human error causes for data loss, according to a survey of some 276 board directors or senior executives by New York Stock Exchange (NYSE) Governance Services and Veracode.

Some 52% say they are buying employee/insider threat liability coverage. Coding and human error are rising on their radar screens: "I was surprised that 35% already are [seeking] insurance for coding and human errors. That number will increase, when there's standardization around what that means," says Chris Wysopal, co-founder and CTO of Veracode. "The insurance industry will drive the standards."

Wysopal says cyber insurance is becoming the norm for recovering costs of rebuilding and cleaning up after a breach. "The really important thing about cybersecurity insurance is it's really going to [define] best practices. You have regulators like the FTC … and SEC … talking about what they think is best," he says, and cyber insurance policies will likely "piggyback" off of those recommendations and influence what gets covered.

Deborah Scally, who heads up NYSE research, says cyber insurance is more pervasive than you'd think. "There's always insurance in place. You may not even know if you're covered [for cybersecurity] under your larger policies," she says. "We're going to be interested in looking at where this goes. We're kind of at the beginning states of that right now."

Some 90% of execs believe the Federal Trade Commission and other regulatory bodies should indeed hold businesses liable if they don't practice due diligence in data protection. And more than half anticipate that their shareholders will expect more transparency about cybersecurity.

"Boards are concerned about brand damage," Wysopal says. 

Kelly Jackson Higgins is Executive Editor at DarkReading.com. She is an award-winning veteran technology and business journalist with more than two decades of experience in reporting and editing for various publications, including Network Computing, Secure Enterprise ... View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
mumbles76
50%
50%
mumbles76,
User Rank: Apprentice
11/6/2015 | 4:02:14 PM
FTC? SEC?
I think Insurance underwriters will require standard security measures to be put in place. But this artcle mentions the FTC and SEC as moderators? Did i read that correctly? Hardly the governing bodies that should be entrusted with our corporate security, if so.
Government Shutdown Brings Certificate Lapse Woes
Curtis Franklin Jr., Senior Editor at Dark Reading,  1/11/2019
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
The Year in Security 2018
This Dark Reading Tech Digest explores the biggest news stories of 2018 that shaped the cybersecurity landscape.
Flash Poll
How Enterprises Are Attacking the Cybersecurity Problem
How Enterprises Are Attacking the Cybersecurity Problem
Data breach fears and the need to comply with regulations such as GDPR are two major drivers increased spending on security products and technologies. But other factors are contributing to the trend as well. Find out more about how enterprises are attacking the cybersecurity problem by reading our report today.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2019-6487
PUBLISHED: 2019-01-18
TP-Link WDR Series devices through firmware v3 (such as TL-WDR5620 V3.0) are affected by command injection (after login) leading to remote code execution, because shell metacharacters can be included in the weather get_weather_observe citycode field.
CVE-2018-20735
PUBLISHED: 2019-01-17
** DISPUTED ** An issue was discovered in BMC PATROL Agent through 11.3.01. It was found that the PatrolCli application can allow for lateral movement and escalation of privilege inside a Windows Active Directory environment. It was found that by default the PatrolCli / PATROL Agent application only...
CVE-2019-0624
PUBLISHED: 2019-01-17
A spoofing vulnerability exists when a Skype for Business 2015 server does not properly sanitize a specially crafted request, aka "Skype for Business 2015 Spoofing Vulnerability." This affects Skype.
CVE-2019-0646
PUBLISHED: 2019-01-17
A Cross-site Scripting (XSS) vulnerability exists when Team Foundation Server does not properly sanitize user provided input, aka "Team Foundation Server Cross-site Scripting Vulnerability." This affects Team.
CVE-2019-0647
PUBLISHED: 2019-01-17
An information disclosure vulnerability exists when Team Foundation Server does not properly handle variables marked as secret, aka "Team Foundation Server Information Disclosure Vulnerability." This affects Team.