Governance of the Internet of Things (IoT)

Abstract

Today’s increasing rate of technological change results from the rapid growth in computer processing speed, when combined with the cost decline of processing capacity, and is of historical import. The daily life of billions of individuals worldwide has been forever changed by technology in just the last few years. Costly data breaches continue at an alarming rate. The challenge facing humans as they attempt to govern the process of artificial intelligence, machine learning, and the impact of billions of sensory devices connected to the Internet is the subject of this Article.

We proceed in six sections. First, we define the Internet of Things (IoT), comment on the explosive growth in sensory devices connected to the Internet, provide examples of IoT devices, and speak to the promise of the IoT. Second, we discuss the challenge of governing the IoT. Third, we look at potential IoT threats. Fourth, we discuss Manufactured Usage Description (MUD) methodology. Fifth, is a look at recent trends in regulatory developments. And finally, we conclude. We believe this Article contributes to our understanding of the widespread exposure to malware associated with IoT and adds to the nascent but emerging literature on governance of enterprise risk, a subject of vital societal importance.

Keywords: Corporate Governance and Risk; Cross-device Tracking; Cybersecurity Standard of Care; Data Breach; Distributed Control Systems (DCS); FTC; Industrial Control Systems (ICS); Industrial Internet; Internet of Things (IoT); Privacy; Programmable Logic Controllers; Sensors; Stuxnet; SCADA

JEL Classification: K10, K13, K14, K22, K33, O31, O32, O33, O34, K00, M38, L86, L88, L5