E-Business
Allianz: Volatile Markets, US Lawsuits, ESG Issues and SPACs Create New Risks for Managers

Board members and company executives can be held liable for an increasing range of scenarios.

Today’s market volatility, with the increased threat of asset bubbles and inflation, the prospect of a growing number of insolvencies due to the pandemic environment, together with rising scrutiny around the environmental, social and governance (ESG) performance of companies and the urgency for robust cyber resilience are key risks for Directors and Officers (D&Os) to watch in 2022.
Risk managers and their D&O insurers should also closely monitor potential exposures to US derivative actions and other forms of litigation, while also not underestimating the challenges around increasingly popular SPACs (special purpose acquisition companies), according to the latest edition of Allianz Global Corporate & Specialty (AGCS)’ annual D&O report.
“The actions and culture of organizations and their directors and officers are coming under heightened scrutiny from a wide range of stakeholders, with litigation risk a primary concern,” said Shanil Williams, global head of Financial Lines at AGCS.
“This comes against the backdrop of a stabilizing D&O marketplace, although capacity is still tight in some segments and many companies would like to buy more limits than the industry can offer. The market remediation has advanced, including our own portfolio at AGCS, and this will gradually ease the pressure that some of our clients are facing. We are adopting a cautious and disciplined underwriting approach and need to remain wary about the current volatile business environment and closely monitor loss trend patterns. However, the D&O insurance space is slowly, but surely, offering opportunities for profitable growth again in selected pockets – and we are eager to pursue these.”
Uncertain insolvency issues continue to be key topic in the D&O space
The withdrawal of support measures for companies established during the pandemic sets the stage for a gradual normalization of business insolvencies in 2022.
The Euler Hermes Global Insolvency Index is likely to post a +15% y/y rebound in 2022, after two consecutive years of decline (-6% forecast in 2021 and -12% in 2020).
While the wave of insolvencies has so far been milder than anticipated, mixed trends are expected across the world.
In less developed markets, such as Africa or Latin America, the number of insolvencies is expected to increase faster compared to more developed economies, such as France, Germany and the US, where the impact of the governmental support is expected to last for longer.
Traditionally, insolvency is a major cause of D&O claims as insolvency practitioners look to recoup losses from directors.
There are many ways that stakeholders could go after directors following insolvency, such as alleging that boards failed to prepare adequately for a pandemic or for prolonged periods of reduced income.
Market volatility, climate change and digitalization key issues
The financial services industry, but also companies from other sectors, continues to face multiple risk management challenges in the current economic climate.
Markets are likely to become more volatile with the increased risk of asset bubbles and inflation rising in different parts of the world.
At the same time, more banks and insurers are expected to assign individual responsibility for overseeing financial risks arising from climate change, while investors are paying closer attention to the adequate and timely disclosure of the risk that it poses for the company or financial instrument they invest in.
The tightening regulatory environment, the prospect of climate change litigation or ‘greenwashing’ allegations could all potentially impact D&Os.
Meanwhile, digitalization has further accelerated following Covid-19, creating enhanced cyber and IT security exposures for companies.
This requires firms’ senior management to maintain an active role in steering the ICT (information and communication technologies) risk management framework.
“IT outages and service disruptions or cyber-attacks could bring significant business interruption costs and increased operating expenses from a variety of causes including customer redress, consultancy costs, loss of income and regulatory fines. Last, but not least, brand reputation can also suffer. All this can ultimately impact a company’s stock price with management being held responsible for the level of preparedness,” said Pauline Vacher, head of Financial Lines for South Africa and France.
Heightened litigation risk in the US
Litigation risk continues to be a top D&O concern, in particular around shareholder derivative actions which are increasingly being brought on behalf of foreign companies in US courts.
“A number of new lawsuit filings, the recent openness of certain courts to extending long-arm jurisdiction, and a possibly record-breaking settlement announced in October 2021, point to heightened US litigation risk for directors and officers of non-US domiciled companies,” David Ackerman, Global Claims Key Case Management at AGCS emphasizes.
Since early 2020, a group of plaintiffs’ firms has brought more than 10 derivative lawsuits in New York state courts on behalf of shareholders of non-US companies seeking to hold directors and officers legally and financially accountable for various breaches of duty to their corporations.
The financial hurdles to bring suit in the US are significantly lower than in many other countries, while US courts and juries are considered more plaintiff-friendly than many others around the world.
The consequences to directors and officers forced to defend themselves in derivative litigation before US courts can be severe.
In what may turn out to be a record-setting settlement for a US derivative lawsuit, in October of this year defendants agreed to pay a minimum of US$300mn to settle litigation brought in a New York state court by shareholders of Renren, a social media corporation based in China, and incorporated in the Cayman Islands, after allegations of corporate misconduct.
Scrutiny over SPACs
Another emerging risk in the global D&O insurance space comes from the growth of so-called Special Purpose Acquisition Companies (SPACs), also known as ‘blank check companies’.
These represent a faster track to public markets. Advantages fueling the growth of SPACs over traditional Initial Public Offerings (IPOs) include smoother procedures, less regulatory and process burdens, easier capital sourcing and shorter timelines to complete a merger with target companies. During the first half of 2021, the number of SPAC mergers in the US, both announced and completed, more than doubled the full year total of 2020 with 359 SPAC filings, garnering a combined US$95bn raised.
The growth of SPACs in Europe may not match the scale of the US boom, but there is still a growing expectation that it will increase despite a less favorable company law environment compared to the US.
In Asia the market is slowly gaining momentum with a significant uptick in companies in China, Hong Kong and Singapore as a new route to accessing capital markets.
SPACs carry a set of specific ‘insurance-relevant’ risks, and losses are already reported to be flowing through to the D&O market as both the SPAC and the private target company typically obtain D&O coverage.
“Exposures could potentially stem from mismanagement, fraud or intentional and material misrepresentation, inaccurate or inadequate financial information or violations of rules or disclosure duties,” said David Van den Berghe, global head of Financial Institutions at AGCS.
In addition, a failure to finalize the transaction within the two-year period, insider trading during the time a SPAC goes public, a wrong selection of a target to acquire or the lack of adequate due diligence in the target company could also come into play. Post-merger the risk of the go-forward company to perform as expected or failure to comply with the new duties of being a publicly-listed company also needs to be considered.
E-Business
NDPC Records 2,000 Cyberattacks in One Week

Dr Vincent Olatunji, national commissioner and chief executive officer, Nigeria Data Protection Commission (NDPC), has disclosed that hackers launched more than 2,000 attacks on the commission’s service portal within one week, highlighting the growing cyber threats facing government institutions as Nigeria expands its digitalisation efforts.

Olatunji disclosed this on Monday in Abuja at a Technical and Organisational Drill on Data Protection Measures for IT Administrators across Ministries, Departments and Agencies organised by the NDPC.
According to him, the attacks underlined the urgent need for government institutions to strengthen their cyber defences and build the human capacity required to protect sensitive information and digital infrastructure.
He said, “Within one week, we experienced more than 2,000 attempts on our service portal.
More than 2,000 within one week. You can imagine what that means.”
The NDPC boss explained that cyberattacks could be motivated by different objectives, ranging from attempts to embarrass government institutions to financial extortion and other malicious activities.
Olatunji noted that government organisations had increasingly become targets of cybercriminals as more public services migrate online.
He said, “A lot of government organisations are being targeted recently. But I don’t think there’s anyone with any major impact on the economy or citizens’ data. But we don’t have to wait until they have a certain effect before we take action.”
The commissioner said the Federal Government’s ongoing digital transformation agenda was increasing the need for stronger cybersecurity safeguards across MDAs.
He recalled that Nigeria’s digitalisation journey gathered momentum after the issuance of the National Information Technology Policy in 2001, which paved the way for various digital initiatives and strategic roadmaps across government institutions.
According to him, the government is intensifying efforts to achieve full electronic governance and seamless interaction between citizens, businesses, and public institutions.
“A major announcement was made last week that will get 35 ministries fully digitalised in Nigeria within the next few weeks. Efforts are already ongoing. Some are fully digitalised already, while others are being encouraged to come on board. Over 100 agencies of government are already being involved in this,” he said.
Olatunji explained that many government agencies had already deployed platforms that enable citizens to access services remotely without physically visiting government offices.
He cited the commission’s own digital services, saying applicants seeking licences from the NDPC could complete processes online, including application submission and payments.
The NDPC chief, however, warned that greater digital integration also increases exposure to cyber risks.
“The truth is that all these integrations are driven by a lot of technologies developed by private sector organisations. When you move to full integration or when you interact, there is every likelihood that bad actors will target your network,” he said.
To address the challenge, Olatunji called for the development of “cyber warriors” capable of defending government systems and protecting citizens’ data.
He explained that the training programme aligned with key pillars of the commission’s roadmap, including human capital development, technology ecosystem growth, and inter-agency collaboration.
The NDPC boss identified different stages of e-governance maturity, ranging from agencies that only provide information on websites to those offering fully transactional, integrated services.
He stressed that data protection measures should not wait until institutions achieve full digital integration. Olatunji reminded participants that government institutions are classified under the law as data controllers because they collect and process information belonging to Nigerians and non-Nigerians.
He urged MDAs to establish the technical and organisational safeguards required under the Nigeria Data Protection Act to secure their databases and digital platforms.
According to him, technology alone cannot guarantee security without skilled personnel to manage and protect systems.
The commissioner commended public servants, describing them as among the most capable professionals available to drive government policies and programmes.
Olatunji also disclosed that compliance with data privacy requirements across the public sector had improved significantly in recent years. “When we started, the level of compliance with data privacy in the public sector in Nigeria was just four per cent. But now we are doing about 20 per cent and even over,” he said.
He added that many MDAs now make budgetary provisions for data privacy and protection activities, including the appointment of data protection officers and deployment of technical safeguards.
The NDPC chief urged participants to share the knowledge acquired during the training with colleagues in their respective organisations and to develop implementation plans to strengthen compliance.
He said the commission had embarked on various induction programmes, certification initiatives, and training courses for data protection officers across MDAs.
According to him, some participants in the commission’s six-week certification programme were already sitting for examinations, while additional support was being provided through the National Privacy Academy.
Olatunji disclosed that participants at the training would receive free vouchers to access the academy’s self-paced learning platform on data privacy and protection. He also revealed plans to extend training to permanent secretaries and other senior government officials to deepen understanding of data protection obligations across the public sector.
The commissioner encouraged participants to embrace emerging opportunities in the data protection sector, noting that certified data protection officers and licensed Data Protection Compliance Organisations could continue to provide compliance services even after retirement from public service.
In her opening remarks, Dr Tolulope Pius-Fadipe, head of Research and Development at the NDPC, said the training formed part of the commission’s strategic roadmap for human capital development and efforts to build a strong data privacy architecture across ministries, departments and agencies.
She said the programme was designed to promote responsible data management, strengthen public trust, and protect the rights of data subjects, adding that it would help agencies test and improve their ability to protect sensitive public data and maintain critical services during crises.
Pius-Fadipe urged participants to actively engage in the sessions and implement lessons learned in their respective organisations, noting that public institutions were increasingly facing cyber threats.
Also speaking, Mr Olorunisomo Isola, head of Information Technology and Cybersecurity at the NDPC, said the workshop was organised in response to rising cyber incidents targeting public infrastructure as government institutions deepen digitalisation efforts.
He said the training would equip IT administrators with the practical skills needed to implement the technical and organisational measures required under Section 39 of the Nigeria Data Protection Act and to prevent data loss or manipulation across government systems.
According to him, participants would undergo practical sessions on governance, risk and compliance, data protection impact assessments, encryption, data classification, data loss prevention, database security, cloud security and cyber incident response.
He added that the programme would culminate in the development of actionable implementation plans to strengthen data protection governance, improve security posture, reduce cyber risks, and ensure compliance with the NDPA across government institutions.
E-Business
Kaspersky Reports on the Aspects of SOC Effectiveness to Consider for Blind Spot

A new global Kaspersky Security Services report ‘Anatomy of a Cyber World’ reveals a blind spot in enterprise Security Operations Centers (SOCs): while performance is typically measured by detection and response speed, organisations rarely assess whether they’re detecting the right threats.

Large portions of collected telemetry don’t enter real-time detection pipelines, creating hidden gaps that internal assessments tend to miss – and fuelling demand for independent SOC Consulting to uncover them.
As organisations continue to invest in SOCs, measuring the real performance of these departments remains a challenge. Operational effectiveness depends not only on the volume of collected data, but on how well that data is used for detection.
According to a recent Kaspersky global survey, organisations typically evaluate SOC effectiveness through a limited set of key performance indicators: mean time to respond (MTTR) and detect (MTTD) dominate the picture, while deeper indicators like false positive rates or cost per incident remain secondary.
The real question is not just how fast the SOC responds, but whether it is detecting threats before they escalate.
The findings from the Kaspersky Security Services Global Report tell a consistent story: most SOCs are collecting far more data than they are using for detection.
The mean correlation rule coverage across assessed organisations stands at 43%, meaning that on average, active detection logic covers less than half of all ingested data sources.
The rest sits in the platform, available for retrospective investigation, threat hunting, or compliance purposes, but invisible to real-time detection.
This gap is not always unintentional. Some data is deliberately collected outside the scope of active correlation, serving investigation or regulatory requirements. But in many cases, sources are onboarded without a clear detection plan or with rule development deferred and never completed.
However, this is more typical of mature SOCs: in less mature environments, the data is often collected but never actually used.
There are several reasons for that, including sources onboarded ahead of planned rule development, compliance-driven collection without active correlation requirements, unclear internal ownership of detection logic, and resource constraints deferring engineering work indefinitely.
However, the result is the same either way: significant portions of the environment are effectively unmonitored in real time.
What makes this harder to solve is that the problem tends to grow with the organisation. SOCs managing the highest data volumes cover only around 30% of their sources with active detection logic.
As infrastructure expands, detection engineering capacity rarely scales at the same pace. The sources most consistently left without coverage are network telemetry, databases, and web servers – foundational infrastructure that should be at the core of any detection strategy.
The approach to detection logic itself varies widely. Around 50% of assessed SOCs rely primarily on vendor-provided rule sets, while roughly 40% build their logic from scratch. Vendor-reliant teams frequently face elevated false-positive rates and coverage gaps from insufficient tuning; those dependent on EDR carry blind spots where cross-source correlation is absent.
Meanwhile, a lot of organisations set their SOC’s detection scope at initial design and never revisit it, meaning blind spots accumulate silently as infrastructure evolves.
“Even with defined KPIs in place, assessing SOC effectiveness internally remains difficult due to insider view bias, which is why organisations are turning to external SOC Consulting to evaluate detection logic, analyse event flows and simulate attacks to understand what is actually being caught.
To improve, organisations should build a structured detection engineering process: a repeatable discipline for developing, validating and regularly reviewing detection logic,” comments Roman Nazarov, Head of SOC Consulting at Kaspersky.
To align internal processes and technologies with today’s evolving threat landscape, organisations can explore Kaspersky SOC Consulting, which helps build an in-house SOC from scratch, assess the maturity of an existing one, or enhance specific capabilities such as detection and response procedures.
In 2025, the most common consulting projects were SOC Technical Assessment (23.4%), SOC Framework Development (20%) and both SOC Maturity Assessment and SIEM Quality Assurance (11.7% each), reflecting a growing demand for deeper visibility into SOC performance.
To learn more about SOC detection effectiveness and practical steps to strengthen your security monitoring, read the full report.
The ‘Anatomy of a Cyber World’ is a comprehensive global report drawing on incident statistics from Kaspersky Managed Detection and Response, Kaspersky Incident Response, Kaspersky Compromise Assessment and Kaspersky SOC Consulting, shedding light on the most prevalent attacker tactics, techniques and tools, as well as the characteristics of detected incidents and their distribution across regions and industry sectors.
E-Business
AI and IoT Hold the Key to Nigeria’s Economic Future – NCC

Nigerian Communications Commission (NCC) has identified Artificial Intelligence (AI) and the Internet of Things (IoT) as critical technologies for improving business efficiency, accelerating innovation and supporting Nigeria’s ambition to build a $1 trillion digital economy.

Aminu Maida, Executive Vice Chairman and Chief Executive Officer of the NCC, made this known at the 17th edition of Nigeria Communications Week and Africa’s Beacon of ICT Merit and Leadership Award held in Lagos.
Represented by Toluwalase Modele Rufai, Acting Controller of the NCC Lagos Office, Maida said AI and IoT had evolved from emerging technologies into powerful tools driving productivity, reducing operational costs and creating competitive advantages across multiple sectors.
Speaking on the theme, “Impact of AI and IoT on Business Operational Efficiency,” he described the technologies as indispensable to Nigeria’s economic transformation agenda.
“This year’s theme is not only timely but profoundly important. As Nigeria accelerates its journey toward a $1 trillion digital economy, Artificial Intelligence and the Internet of Things have moved from futuristic concepts to present-day drivers of productivity, cost optimisation and competitive advantage across every sector,” he said.
According to him, AI-powered predictive analytics is helping manufacturers anticipate equipment failures before they occur, reducing downtime and maintenance costs, while IoT-enabled sensors are improving agricultural productivity through real-time monitoring of soil conditions.
He added that connected technologies are transforming logistics and supply chain management by improving visibility, reducing delays, lowering operational costs and enhancing customer satisfaction.
“Across banking, healthcare, smart cities, manufacturing and governance, these technologies are streamlining operations, automating routine tasks and unlocking data-driven decision-making that was unimaginable just a decade ago,” he said.
Maida, however, stressed that the successful deployment of AI and IoT depends largely on the availability of resilient and high-capacity telecommunications infrastructure.
“At the heart of every AI and IoT deployment lies one critical enabler: resilient, high-capacity connectivity. Without secure, scalable broadband networks, the full promise of real-time data exchange, seamless device interoperability and intelligent automation remains unfulfilled,” he said.
The NCC boss said the commission was reviewing the Nigerian National Broadband Plan (NNBP) 2020–2025 to improve efficiency and sustainability within the telecommunications sector.
He disclosed that the commission was also engaging state governments to reduce Right-of-Way charges and administrative bottlenecks in order to accelerate fibre-optic infrastructure deployment nationwide.
According to him, the NCC has made harmonised spectrum resources available to support mobile broadband, fixed wireless access and IoT services, while the 2026–2030 Spectrum Roadmap is expected to create additional opportunities for broadband expansion and emerging technologies.
“With broadband penetration exceeding 52 per cent and growing 4G and 5G adoption, these efforts enhance efficient spectrum management, drive innovation, provide regulatory certainty and position Nigeria in line with global best practices,” he said.
Maida also highlighted the commission’s recently introduced General Authorisation Framework, which provides a regulatory sandbox for innovators to test AI, IoT, blockchain and other emerging technologies in a controlled environment.
He noted that the NCC had strengthened cybersecurity and consumer protection through initiatives such as the designation of telecommunications infrastructure as Critical National Information Infrastructure (CNII), adoption of a Zero-Trust cybersecurity framework and implementation of guidelines for secure AI and IoT deployment.
The NCC chief emphasised the need for collaboration among government agencies, regulators, operators, technology providers, academia and investors to address challenges such as inadequate power supply, skills shortages, data privacy concerns and consumer protection issues.
“The NCC remains fully committed to creating an enabling, predictable regulatory environment that attracts investment, spurs innovation and delivers inclusive growth,” he said.
Maida urged stakeholders to work collectively towards building a digitally empowered nation where AI and IoT technologies not only improve business efficiency but also transform lives, strengthen the economy and position Nigeria as a leader in Africa’s digital future.
The event brought together regulators, industry leaders, innovators and other stakeholders to discuss emerging trends, policy directions and technological innovations shaping Nigeria’s digital economy.
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