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The following is a quotation from IFRS Framework: A liability is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of resources embodying economic benefits. â F.49(b)
What is Cyber Liability? Cyber liability is the risk posed by conducting business over the Internet, over other networks or using electronic storage technology. Insurance can be bought and ârisk basedâ security strategies can be used to mitigate against both the first- and third-party risks caused by cyber liability. A âfirst partyâ cyber liability occurs when your own information is breached. For example, a hack that results in the exposure of your own trade secrets would create a first party cyber liability.