Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

How Should Directors Respond to the SolarWinds Attack

By Paul A. Ferrillo
May 01, 2021

It is no surprise that the SolarWinds cyberattack of December 2020 continues to be in the news on a daily basis. Why? First, it was likely a sophisticated nation-state attack. It likely affected upwards of 18,000 clients of SolarWinds. It definitely affected many United States Government agencies also. The attack was sneaky and continues to be very hard to find on affected networks. Most importantly, it happened in an area that many people had not previously considered a risk — a regular update on a critical vendor software package that many companies have installed, get regular updates on, and, when updates are issued, they just press the button to stay "install."

This article is not about "who did what wrong" or "what nation-state commenced this attack." There are enough of those articles around. What this article is really more about is, "if I am a Director, what should I be thinking about the SolarWinds attack?" Indeed as noted by former SEC Commissioner Luis Aguilar on cybersecurity:

Given the known risks posed by cyber-attacks, one would expect that corporate boards and senior management universally would be proactively taking steps to confront these cyber-risks. Yet, evidence suggests that there may be a gap that exists between the magnitude of the exposure presented by cyber-risks and the steps, or lack thereof, that many corporate boards have taken to address these risks. Some have noted that Boards are not spending enough time or devoting sufficient corporate resources to addressing cybersecurity issues. According to one survey, Boards were not undertaking key oversight activities related to cyber-risks, such as reviewing annual budgets for privacy and IT security programs, assigning roles and responsibilities for privacy and security, and receiving regular reports on breaches and IT risks. Even when Boards do pay attention to these risks, some have questioned the extent to which Boards rely too much on the very personnel who implement those measures. In light of these observations, Directors should be asking themselves what they can, and should, be doing to effectively oversee cyber-risk management. (Emphasis supplied).

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Legal Possession: What Does It Mean? Image

Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.

The Stranger to the Deed Rule Image

In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.