As my friends will tell you I am a
voracious reader -- especially when it comes to cyber and physical security,
supply chain security, critical infrastructure protection and industrial
controls systems (ICS) security. This past week I was catching up on my
"to be read" pile and found a fantastic article I'd like to post.
Please take a moment to check out this
web page -- Government Technology and Services Coalition
-- otherwise known as GTSC. From their website: "The Government
Technology & Services Coalition (GTSC) is a nonprofit 501 (c)(6),
non-partisan association of innovative, agile small and midsized company CEOs
that create, develop, and implement solutions for the Federal homeland and national
security sector."
On the GTSC Blog there was a really well
done article by Divonne Smoyer, Brian E. Finch, and
Emanuel Faust, Partners, Dickstein Shapiro LLP.
The blog is entitled "Ten Cyber Issues Board and Chief Legal Officers Need
to Know (and Worry) About."
Of course when I saw
the word "cyber" and the focus on Boards of Directors and Chief
Counsels I immediately wanted to read it...and it was worth the time.
Ok, what are the 10
issues they want Board members to recognize? Here they are in brief:
- The stakes to share value and the
bottom line are high.
- The hackers are two steps ahead of
you already.
- Cyber and data loss threats pose
merger risks.
- Lost or stolen intellectual
property or customer or employee information can turn a deal from sweet to
sour.
- There is a maze of state and
Federal data protection and data loss notification requirements to navigate.
- The failure to be fully informed
of and proactive against cybersecurity and data loss risks could lead to
litigation.
- If the breach doesn't get you, the
litigation will.
- There are Federal programs
available to help mitigate corporate liability through the SAFETY* act.
- Insurance coverage is available through
traditional or tailored policies.
- Outside counsel comes with the
benefit of attorney-client privilege.
Many thanks to Mr. Finch, et al, for
their insights. It was quite interesting
and validated my own opinion -- and I believe my friend Andy Bochman's
opinion -- that the Directors and Chief Counsels need to be attuned to cyber
security issues since these issues can -- and will -- affect their business.
Cheers!
* SAFETY ACT: Support Anti-Terrorism by
Fostering Effective Technologies Act of 2002 (known as the SAFETY Act). This law
provides tort liability protections for products and services that can be used
to detect, defend against, or respond to cyber attacks. It is essential
that boards and their legal advisors be aware of these programs and
assess their applicability to cybersecurity products and services they either procure
or deploy on their own.
