One of the many reasons that companies choose to resolve disputes through arbitration over court litigation is the ability to keep their disputes and the outcome of their disputes private. Arbitration is often chosen to resolve highly sensitive disputes, and being a truly international dispute resolution process, a single arbitration can involve participants from across the world.
Within the arbitral process those participants are likely to exchange information that is not in the public domain. That information may have the potential to cause commercial damage, influence share prices, corporate strategies or even government policy. The outcome of an arbitration could have significant repercussions in the financial markets, particularly for a listed company.
While arbitration is not on many client’s radar as a potential source of cybersecurity risk, in reality the arbitral process is an obvious and attractive target for cyberattacks, particularly if hackers can identify a weak link in the chain of custody.
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