#12186. Board liability for cyberattacks: The effects of a prior attack and implementing the AICPAs cybersecurity framework

July 2026publication date
Proposal available till 28-05-2025
4 total number of authors per manuscript0 $

The title of the journal is available only for the authors who have already paid for
Journal’s subject area:
Sociology and Political Science;
Accounting;
Places in the authors’ list:
place 1place 2place 3place 4
FreeFreeFreeFree
2350 $1200 $1050 $900 $
Contract №12186.1 Contract №12186.2 Contract №12186.3 Contract №12186.4
1 place - free (for sale)
2 place - free (for sale)
3 place - free (for sale)
4 place - free (for sale)

More details about the manuscript: Science Citation Index Expanded or/and Social Sciences Citation Index
Abstract:
A significant litigation trend is the rise in lawsuits filed against boards of directors following cybersecurity incidents. We perform an experiment to examine factors that influence directors’ litigation risk. We examine whether jurors are more likely to hold directors liable when a company previously experienced an immaterial cyberattack, and whether subsequently implementing the American Institute of Certified Public Accountants’ cybersecurity risk management reporting and assurance framework (the “Framework”) can mitigate the effects of a prior attack. Consistent with counterfactual reasoning theory, we find jurors are more likely to hold directors liable for a cyberattack when a company previously experienced an attack. We also find that directors can reduce this liability risk after a prior cyberattack by subsequently implementing the Framework, especially when they obtain external assurance.
Keywords:
AICPA framework; Assurance; Board of directors; Cybersecurity; Juror; Liability; Risk management

Contacts :
0