Thursday, June 9, 2016

9 ‘Musts’ for Privacy & Data Security Risk Management and Compliance

,
 Legaltech News

Most breaches are preventable and can be contained and the risks minimized by following well-known best practices



If you are part of an organization and think you don't have a privacy and data security issue, think again.  Privacy and data security are quickly becoming some of the fastest growing areas of regulation in the U.S., and any organization that uses information technology (IT) or stores personal information for its employees or customers is at risk of a data breach.


Risk management and compliance can be especially challenging given today's overlapping and sometimes contradictory common law principles, federal laws and regulations, agency guidelines, state laws and regulations, international obligations, industry standards, and other general and sector-specific requirements. This patchwork system, together with cross-border data flow challenges and increasingly creative hackers, heightens the risk of privacy violations and means that attorneys and privacy professionals must remain vigilant at all times.

Because they depend on potentially vulnerable IT resources, the question for most companies is not if they will suffer a data security breach or other event, but when. That's the bad news. The good news is that most breaches are preventable, and even if they do occur, can be contained and the risks minimized by following well-known best practices. Here are nine tips to help you get started.

1. Recognize that it’s not just an IT issue: Privacy and data security are not just IT issues. They are also people issues that require leadership attention and engagement across all organization levels. However, making privacy and data security priorities must start at the top, so bridging knowledge and communication gaps between executives and technical staff is critical. Well-versed counsel and privacy professionals can play an important role in filling these gaps and helping to identify and manage risks.

2. Develop appropriate policies and reinforce them with regular training: Protecting an organization's information assets, such as computer and networking hardware, software, and data, whether electronic or paper, is part of everyone's job. Organizations should write their information security policies for and apply them to all workforce members, including employees, contractors, volunteers, and any others who may access or use the organization's information assets.  Policies should:

·         Establish information security as a core value;

·         Lay out clear rules for using and protecting information assets;

·         Help workforce members to understand risks and adopt a balanced view;

·         Provide a basis for training and ongoing awareness building efforts; and
·         Foster communication among workforce members and compliance groups.

Continually engage your workforce with regular training and awareness reminders. Organizations should also provide timely access to experts since no policy can address every issue—making it easy for workforce members to get help prevents them from circumventing policies and creating unnecessary risks.

3. Create and maintain data and IT asset inventories: It’s hard to protect something that you don’t know is there. Too many organizations don’t have a clear picture of the data that they hold or the IT assets that they use, let alone a means for keeping inventories up-to-date. These gaps create serious cybersecurity risks by leaving:

·         Potentially sensitive data unprotected;

·         Known vulnerabilities unresolved; and
·         Data security events undetected.

Data mapping can help ensure that stakeholders, including legal, know what information the organization stores, where it is located, and how it is used. Tracking IT assets, including hardware and software versions, lowers risk by enabling comprehensive risk assessment and vulnerability management.

4. Know your risks: Federal and state laws and regulations, contract obligations, and industry best practices require many organizations to perform privacy and data security risk assessments. Even diligent organizations with sophisticated programs may experience periodic lapses in their controls. Risk assessments identify these issues and provide an opportunity to address them.  Organizations need to regularly consider:

·         Their own unique risk profiles;

·         Their performance against applicable standards of practice;

·         Risks created by their third-party service providers or supply chain vendors; and
·         Privacy and data security awareness and compliance across their workforce.

5. Understand and maintain sound safeguards, including vendor oversight: Organizations should develop, implement, and maintain administrative, physical, and technical safeguards to protect their information assets, according to their activities and the sensitivity of the data they hold. Counsel and privacy professionals need to understand technology basics and ensure that reasonable measures are maintained, such as:

·         Preventive controls to avoid unauthorized activities or data access;

·         Detective controls to timely discover incidents (since preventive controls are unlikely to be effective in all cases);

·         User authentication, authorization, and access control measures;

·         End user device controls for desktops, laptops, and mobile devices;

·  Computer controls, such as anti-malware (anti-virus), configuration management, and patching to resolve known vulnerabilities;

·         Network and connectivity controls, including firewalls and other measures that protect remote access, wireless, internet, and business partner connections;

·         Log management to securely collect and review computer and network activity logs;

·         Data protection controls, including encryption and data loss prevention software; and
·         Information handling and storage standards to protect electronic and paper records.

Today, many (if not most) organizations use at least some cloud computing or other vendor-supplied services that require access to the organization's data or IT environment. Companies should engage in ongoing oversight throughout the business relationship and require their service providers to meet all applicable privacy and data security standards.

6. Stay vigilant: Maintaining reasonable privacy and data security practices in today's environment of evolving laws and rapidly changing threats requires constant vigilance. Continuous monitoring programs help minimize risks by using automated tools that operate on an ongoing basis to:

·         Monitor security controls;
·         Identify vulnerabilities;
·         Verify hardware and software configurations; and
·         Flag suspicious user activities.

7. Expect the best, but prepare for the worst: While many cyber events can be prevented, organizations must be prepared if and when they occur. Develop and regularly test a response plan that includes an event-specific analysis of applicable law and obligations, such as data breach notification to regulators and affected individuals. Plans should also assign responsibilities and explain criteria for engaging law enforcement when criminal attacks occur, including legal review.

8. Drive accountability: Assigning clear ownership for privacy and data security programs, including regulatory compliance, drives accountability. Organizations should adopt an approach, such as NIST's Cybersecurity Framework, to regularly measure and report data security program effectiveness—keeping executives informed and engaged.

9. Keep up-to-date: Privacy and data security are global issues. Keeping up with changes in law, regulations, and best practices at federal, state, and international levels can be challenging. Trusted resources cut through the noise and streamline risk management and compliance initiatives. Online legal know-how platforms like Thomson Reuters Practical Law can help get you up-to-speed, so you can be sure that you’re doing everything you can to protect your organization, its customers, and the data it holds.

A more detailed checklist of common gaps in information security practices can also be found on Practical Law’s website.

Melodi (Mel) Gates is an attorney, prior CISO, and Senior Legal Editor specializing in privacy and data security at Thomson Reuters Practical Law. Practical Law is an online provider of legal know-how such as checklists, how-to guides, market trend reports, annotated model documents, and other resources designed to help lawyers work more effectively. For more information or a free trial, visit Practical Law today.

No comments:

Post a Comment