Abstract

http://ssrn.com/abstract=2128834
 


 



Data Integrity Preservation and Identity Theft Prevention: Operational and Strategic Imperatives to Enhance Shareholder and Consumer Value


Kevin H. Govern


Ave Maria School of Law; California University of Pennsylvania; CUNY, John Jay College of Criminal Justice

John I. Winn


Shenandoah University

2012

Risk Management and Corporate Governance, Abol Jalilvand and A. G. Malliaris, ed., Routledge, 2012

Abstract:     
Given the current risk environment, businesses are obligated to do their utmost to protect systems and ensure consumer confidentiality. Unfortunately, even the prudent and vigilant business entities may still be susceptible to data theft or other outside system intrusion. In this respect, sound corporate governance should include some degree of planning and preparation for worst-case scenarios.

There are several fundamental questions that every business should consider in order to effectively prepare for a breach of cybersecurity and ensure the integrity of stored data. For instance, in the event of a major system compromise, who bears the cost of system restoration or reimbursement? What about negative publicity, loss of goodwill, and lawsuits? What constitutes due diligence before and after a data compromise? What steps should management consider post-breach? What are the legal consequences to our business, customers, and other stakeholders, and should we purchase cyberinsurance?

This chapter seeks to provide answers to those questions, as well as to offer valuable suggestions for both individual private consumers and business entities on how to best protect electronic information. The first section of the chapter, “Part I,” addresses current infrastructure risks and the challenges associated with cyber insurance underwriting. The next section, “Part II,” will attempt to summarize the increasingly complex legal and regulatory landscape inherent in preserving data integrity and preventing identity theft. Finally, the last section, “Part III,” of this chapter will address the concept of “due diligence” and emphasize the importance of postbreach best practices that seek to protect revenue streams and customer goodwill while minimizing business disruptions and legal liability.

Keywords: Risk management, corporate governance, data integrity preservation, identity theft prevention, operational imperatives, strategic imperatives, shareholder value, comsumer value, cyberspace, cybercrime, cyberwarfare

JEL Classification: K10, K42.L14, L15, L20. L21, L50, L52, L86, L96, M10, M11, M50, M51, O30, O31, O32, O33, O34, P41

Accepted Paper Series





Not Available For Download

Date posted: August 14, 2012  

Suggested Citation

Govern, Kevin H. and Winn, John I., Data Integrity Preservation and Identity Theft Prevention: Operational and Strategic Imperatives to Enhance Shareholder and Consumer Value (2012). Risk Management and Corporate Governance, Abol Jalilvand and A. G. Malliaris, ed., Routledge, 2012. Available at SSRN: http://ssrn.com/abstract=2128834

Contact Information

Kevin H. Govern (Contact Author)
Ave Maria School of Law ( email )
1025 Commons Circle
Naples, FL 34119
United States
HOME PAGE: http://www.avemarialaw.edu/faculty/profile/Kevin.Govern
California University of Pennsylvania ( email )
250 University Avenue
California, PA 15062
United States
(845) 234-8532 (Phone)
HOME PAGE: http://www.calu.edu/academics/faculty/Kevin-Govern.aspx
CUNY, John Jay College of Criminal Justice ( email )
695 Park Avenue
New York, NY 10021
United States
(845) 234-8532 (Phone)
HOME PAGE: http://www.jjay.cuny.edu/departments/protection_management/about_us.php
John I. Winn
Shenandoah University ( email )
VA
United States
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