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Should Your Firm Invest in Cyber Risk Insurance?

20 Pages Posted: 15 Dec 2011  

Scott Shackelford

Indiana University - Kelley School of Business - Department of Business Law; Harvard Kennedy School Belfer Center for Science & International Affairs; Center for Applied Cybersecurity Research; Stanford Center for Internet and Society; Stanford Law School

Date Written: December 14, 2011

Abstract

Firms have increasingly been turning to cyber risk insurance to better manage the cyber threat and any resulting legal liability from data breaches. But how useful is cyber risk insurance? This Article analyzes the impact of cyber attacks on firms, some of the applicable U.S. law shaping private sector responses to data breaches, and the extent to which cyber risk insurance helps to mitigate the cyber threat. Ultimately I argue that firms must take a proactive strategy to manage cyber attacks for their competitive well-being as well as to enhance overall cyber-security and help secure critical national infrastructure.

Keywords: Cybersecurity, Internet, Cyber Risk Insurance, Cyber Attack, Data Breach, Cyber Law

Suggested Citation

Shackelford, Scott, Should Your Firm Invest in Cyber Risk Insurance? (December 14, 2011). Business Horizons, 2012. Available at SSRN: https://ssrn.com/abstract=1972307

Scott J. Shackelford (Contact Author)

Indiana University - Kelley School of Business - Department of Business Law ( email )

Bloomington, IN 47405
United States

Harvard Kennedy School Belfer Center for Science & International Affairs ( email )

79 JFK Street
Cambridge, MA 02138
United States

Center for Applied Cybersecurity Research ( email )

Wylie Hall 105
100 South Woodlawn
Bloomington, IN 47405
United States

Stanford Center for Internet and Society ( email )

Palo Alto, CA
United States

Stanford Law School ( email )

Stanford, CA 94305
United States

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