Data Security—The Risk Management You Cannot Afford to Ignore

The growing threat of cyber-related/electronic data security breaches and the attendant risk of liability and loss should compel companies in all industries to be evermore vigilant with their processes and procedures to protect against such breaches and to have a well-developed response protocol. Whether that breach is caused by a hacker, a stolen computer, a bug in a company’s security software or a bug in an encryption program (see Heartbleed Bug), even companies that employ presumably state-of-the-art security measures are vulnerable to data security breaches. The reasonableness of the security measures in place and the effectiveness of response to a security breach are critical to minimizing potential liability, as well as to sound business practice.