Will Officers & Directors Be Held Legally Responsible for Companies’ Data Breaches and Cybersecurity Incidents?

Will Officers and Directors be held legally responsible for their companies’ data breaches and cybersecurity incidents?

Will Officers & Directors Be Held Legally Responsible for Companies’ Data Breaches and Cybersecurity Incidents?

Will Officers & Directors Be Held Legally Responsible for Companies’ Data Breaches and Cybersecurity Incidents?

That is the question I addressed in Cybersecurity Risk: Law and Trends – A Director’s Duties Must Evolve With The Company’s, which was recently published in the Spring 2015 issue of Ethical Boardroom (see article below).

The article is short and gets to the point. It explains where the trend is headed on this issue as well as why it is moving in that direction. It also identifies some steps that Officers and Directors can take to help mitigate this risk — while also helping protect their companies from the dangers lurking out in the cyber world.

You can view the full article in the Spring 2015 issue of Ethical Boardroom, which begins on page 108, but I also recommend you take some time to look at the entire issue as it is very informative. As always, feel free to let me know if you have any questions or comments.

The Best Evidence Why Your Company Needs a CISO Before a Data Breach

“The proof is in the pudding,” goes the old saying.

When it comes to organizational changes companies make following a data breach, If the proof is in the pudding, then the verdict is clear: companies should hire a Chief Information Security Officer (CISO) before they have a data breach.

Why?

According to this article in USA Today, companies usually tend hire CISOs after they have had a data breach. After?

Yes. They do this because they do not want to have another data breach and, after feeling the sting from the first, they are finally willing to invest more resources so that they do not have another data breach.

There is another old saying to remember: “Wise men learn from their mistakes, but wiser men learn from the mistakes of others.” (author unknown)

As your company’s leader, which will you be?

Check out my first post on Norse’s DarkMatters > Sony Hack: Where Do We Die First?

Hey everybody, go check out my first post on Norse’s DarkMatters blog — yeah, you know, Norse with the awesome Live Cyber Attack Map!

Now that you’re mesmerized by the map, here’s the post and please share it! Sony Hack: Where Do We Die First?

Podcast: #DtR Episode on Lines in the Sand on “Security Research”

You really need to hear this podcast where we draw lines in the sand staking out what is — and what is not — security research

The #DtR Gang [Rafal Los (@Wh1t3Rabbit), James Jardine (@JardineSoftware), and Michael Santarcangelo (@Catalyst)] invited me to tag along for another episode of the Down the Security Rabbit Hole podcast.

Also joining us for this episode were Chris John Riley (@ChrisJohnRiley) and Kevin Johnson (@SecureIdeasllc).

You can click here to see a list of the topics we covered in this episode or just jump straight into the podcast.

Let us know what you think by tagging your comments with #DtR on Twitter!

Yes, I will mention this post in tomorrow’s seminar on data breach! “Who’s Gonna Get It?”

This is one of my favorite and my most popular posts ever — and you better believe I will find a way to mention it to this group of CEOs to help them understand why it is important to take seriously the data security threat!

Data Breach – Who’s Gonna Get It? | business cyber risk | law blog.

 

Publix hasn’t had a data breach but is already seeking PR help in case it does — good or bad?

Chaos? Plan Ahead!This is interesting. Publix grocery store chain has made the news because of data breach — not because they have had a data breach (though they probably have and just don’t know it) — but because it has been learned that it is sending out proposals for PR help in the event it does have a data breach. The reaction to this is mixed. Some people think it is good but many are taking a cynical view of this move.

What do I think?

Well, thank you for asking!

I like it. First, one of the most important messages I try to preach these days is the need for companies to take the threat of data breach seriously, to prepare ahead of time, and have a plan in place so that all they have to do is execute that plan in the event a breach occurs. Look, I blogged about this just this past week and a whole bunch of times before.

Does the fact that the attention to Publix’s preparation is being focused on the fact that it is seeking PR help in any way diminish this?

That depends.

One of the key components to any breach response and breach response plan is to involve PR to help the company properly “message” their response to its customers to help minimize the overall disruption to the business. If the business crumbles, nothing else matters — the PR side is a key component to this is crucial.

So, if Publix is screening and assembling its PR team in an overall effort to prepare for a breach, that tells me that it is taking data breach seriously [give it a check] and that it is putting resources behind that concern [give it another check], and putting a plan in place to be prepared to respond to the inevitable data breach [give it another check]. This is good — this is what we are encouraging.

What this also tells me, and that I hope is the case, is that if Publix is devoting energy and resources to this kind of preparation, there is at least a decent chance that it is putting energy and resources into actually hardening its data security systems and improving its overall cyber security as a company. If this is true, then this is great — this is exactly what we are trying to encourage!

Now, if my assumptions are wrong and all that Publix cares about is the PR message and nothing else, well, then that is a much different story. If it is, then I really have to question the wisdom of its leadership because what this shows is that Publix is aware of the threat, recognizes the harm it can cause, is devoting energy and resources to it but in a self-centered and careless way, and is making a conscious decision to not correct it — and when that happens, if it has a breach, it just may be the one to get it!

Check out the article for yourself, here’s a brief quote:

Publix operates 1,082 locations in six states across the South and Southeast, and ranks as one of the 10 largest supermarkets by volume. The company’s request for proposals says it “would like to understand how a PR company could provide assistance preparing for, and during a data breach, e.g. advice and assistance with messages.”That could include a “proactive review” of Publix customer relations and “rapid response scheduling in the event of a confirmed breach. Publix prides ourselves in the relationships we build with our customers and associates and as such will require a company with outstanding communications skills and experience.”

via ‘Proactive’ Publix seeks PR help in event of data breach | TBO.com, The Tampa Tribune and The Tampa Times.