Cyber Insurance and Corporate Governance: Facing New Threats
While fears of “Cyber Pearl Harbors” dominate headlines, many of the most costly cyber attacks are better characterized as acts of theft, jeopardizing some of the most valuable assets US companies possess. With intrusions targeting vulnerable intellectual property and the personal information of millions, US corporations have struggled to build adequate corporate governance frameworks to manage risk in the face of cyber breaches. While insurance generally plays a critical role in corporate risk management, serious obstacles stand in the way of creating a robust cyber insurance market. Today, company executives confront many difficult questions: Should corporations collaborate closely with government to investigate cyber incidents? How should companies navigate inconsistent demands of proliferating cyber security regulators and civil litigants? How can we manage the rapidly expanding liability landscape successfully? In this sixth Sloan Cyber Security Lecture, Peter Hancock, President and CEO of AIG, together with a panel of cybersecurity experts, explore how we might improve our ability to protect against the mounting losses from breaches. Is there a role for the insurance market in helping companies create a sophisticated cybersecurity risk management framework? What are the most intractable obstacles in the development of robust cyber insurance options? And how might the insurance industry collaborate with other risk management options to form a comprehensive approach to cyber threats?
This event was co-sponsored with the generous support of AIG, DeVore & DeMarco LLP, and Verizon.