Assessing Multinational Global Cyber Business Risk Of Cyberattacks – Minimizing The Risk Of Loss Due To Wrongful Jurisdiction

Abstract

In Cyberspace, more and more, corporations with global holdings are seeking excellence in business around the world mostly by Internet. In order to do business, several legal and economic developments must be explored to assess the risks and practicalities involving the new legal issues created by cyberspace. Compliance officers, because of their responsibilities to develop cybersecurity plans, need to understand the personal jurisdictional effects test and the subject matter test to assess risk of loss. Jurisdiction as to what court or what administrative agency has authority to decide a particular case is critical to the success of a recovering party filing a lawsuit seeking damages for a cyberattack. The jurisdictional nuances analyzed in this paper offer a gradual development of the leading court and administrative cases for guidance on the issues. This paper is worth your time because: 1) it examines the inconsistent and obscure legal standards for jurisdiction in cyber space including cyberattacks, 2) it shows the places and methods used by both the Federal Trade Commission and the Courts having jurisdiction over cyberattack litigation, 3) it gives the recommendations for U.S. and international corporations on the subject of cyber jurisdiction. All of this is supported by current case law and journal articles involving cybersecurity to help minimize the mistakes that I have observed in the practice saving time and money. This is a new technology area of inquiry facing many corporate legal departments, and IT managers today. So, this paper involves the legal/business research necessary to give guidance regarding the jurisdictional boundaries of cyberattack litigation and ways to substantially reduce the risk of loss.