Data breaches are a growing concern for companies and General Counsel are increasingly required to play a bigger role managing the risks.
According to a Legal Week Intelligence report, nearly 50% of general counsel say planning for cyber-security incidents and responding to breaches is now part of their job.
Are you ready to play a more proactive role to protect your company from data security threats and reduce the risk of liability?
Waiting to react to a data breach, especially if the data is a high-value asset such as intellectual property, trade secrets and confidential business information, can put your entire organisation at risk.
Studies show that companies that suffer a data breach can expect to face an average 5% drop in stock price and 7% loss in customers, resulting in total costs ranging anywhere from $300k (€245k) to up to
$14m (€11.4m). And that’s not to mention the risk of personal liability that you or your Directors may also face. Regulators and shareholders might allege that you breached various fiduciary duties, such as those of care and loyalty, by not mitigating known data security risks.
What’s more, if the data breach involves personal data, which is increasingly regulated under the new
General Data Protection Regulation (GDPR), your business may be subject to penalties of up to €20 million or 4% of your global revenue. Furthermore, depending on local data protection laws that run parallel to GDPR, you may also face administrative and criminal penalties and/or damages claims, arising from non-compliance or violation of laws in your jurisdiction.
With so much at stake, it is imperative that legal departments – not just IT, data protection or compliance experts – take the time to manage the risks to corporate data and protect the company against the threats that cause data breaches. In doing so, you can make sure your executive board and auditors are satisfied that you have taken all necessary steps on your part to prevent a breach and have a response plan in place.
In our latest whitepaper, “Best Practices for Preventing a Data Breach & Avoiding Liability”, we explore the most prevalent types of data security incidents that result in data breaches to help you identify where you are vulnerable, take mitigation measures and prevent liability by adopting a structured approach to data breach management using technology.