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Avoiding Data Breaches: A Guide for Boards and C-Suites
"Recently, plaintiffs have targeted corporate board members and C-level executives alleging that their data privacy–related claims result from a breach of fiduciary duties."
Why this is important: Corporate board members and C-level executives cannot hide their heads in the sand when it comes to data security. A data breach can have a significant monetary and reputational impacts on the company. Consequently, they risk being named in suits brought by customers whose personal data was exposed as a result of the breach and by shareholders alleging that the board members and executives breached their fiduciary duty to protect the plaintiffs' personal information or that they unnecessarily exposed the company to liability. There are steps that board members and C-level executives can take to protect their company from data breaches and themselves from liability. The first step is to implement technology solutions, including quantum computing and quantum-resistant encryption, zero trust security, and zero knowledge proofs. Quantum computing and quantum encryption can generate truly random numbers for encryption keys, which prevents hackers from cracking the company's encryption. Some privacy laws incentivize encryption, like the California Consumer Privacy Act, by stating that a company's failure to encrypt personal information can result in a direct cause of action by customers in the event of a data breach. Zero trust security is used to mitigate the danger of an insider threat by requiring all users and devices attempting to access the network to verify their identity. Zero knowledge proofs uses the blockchain to protect data transmitted over the Internet. Utilization of these new technologies will protect your company's data and your board members and C-suite executives from potential liability.
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