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Directors and officers face legal implications of cybersecurity risks

The increase in remote working due to the impact of the COVID-19 pandemic has created opportunities for cyber attacks which exploit system weaknesses.

Recent research carried out by data protection and network security experts Barracuda Networks found that 46% of global businesses have encountered at least one cyber security scare since shifting to a remote working model during the COVID-19 lockdown.

With millions of workers now operating remotely and the likelihood of this continuing for some time, the need to ensure systems are robust and secure is vital for directors and officers who must understand the legal implications of cybersecurity risks.

Cyber security risk management is now viewed as a key element in a Board’s risk responsibilities. Reported attacks using phishing, malware and ransomware on the public sector, financial and education institutions, highlight the clear and present dangers facing businesses.

Ransomware and system outages have significant data security implications as well as the potential to generate long-lasting and costly business interruption losses. Corporate safeguards deployed by a company can play a key role in minimising losses as data breaches can trigger revenue loss and brand reputation damage.

W Denis Insurance Brokers has a dedicated ProFin team, based in London, that can offer specialist technical advice on management liability issues. To discuss this further with an expert at W Denis, please make arrangements with daniel.moss@wdenis.co.uk and on 0044 (0)113 2439812

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