Executive summary
Currently in Israel, there is no comprehensive body of case law or established legal precedent to guide Directors and Officers (“D&Os”) regarding potential exposures arising from cyber risks. This lack of clarity creates significant uncertainty for D&Os on the boards of companies in Israel and highlights the need for regulatory and / or legislative intervention to provide a clear framework, particularly given the expectation of significant claims being pursued following cyber events.
Background
In recent years, there has been an escalation in cyber events in Israel which, together with technological advances, have significantly changed society and exposed management personnel to new and dangerous risks. Historically, responsibility for such incidents were principally the domain of a company’s IT department. However, today, Israeli board members are seen as having an important role in preventing, managing and resolving these kinds of incidents, which can cause not only huge financial losses but also damage to reputation and trust, and which can lead to legal action against D&Os.
In common with other countries, typical cyber incidents in Israel…
