Unfortunately, data breaches have become an extremely common occurrence. Not all of them have the high-profile of a Target, Ashley Madison, Home Depot or Anthem breach, but the damage to a company and its reputation is very real.
While companies can purchase cyber insurance to help manage the risks associated with a breach, there are also steps a business can take to maximize the relationship with their breach team and minimize the fallout following the cyber event.
Here are five factors to consider when it comes to managing your company’s cyber attack or data breach.
1. Assess the risk
So how does your company prepare for such an eventuality and what steps should be taken after a breach occurs?
“Start with what you will face if a breach occurs,” advises Anthony Roman, president of Roman & Associates, a global investigation, risk management and computer security consultation firm. “Corporations of all sizes that hold any information that can be deemed private or personal are going to face a number of very serious hurtles in a breach that will encourage them to have a breach plan.”
Roman says this includes class action suits for the “undue release or allowing the release of personal and private information. The average class action suit is settling for $2.9 to $3 million.” He estimates the legal costs to defend a company in a class action suit will range anywhere from several hundred thousand dollars to well over one million.
Related: 6 things you need to know about basic security for cyber coverage
“You may face government sanctions for local, state, federal or legal violations, some of which are criminal in nature and some which are civil in nature,” he explains. Criminal violations can pierce the corporate veil and involve specific individuals within the corporation. more.....
For more information contact Debbie Klisch at debbie [at] scicteam [dot] com or 719-329-4441
By Patricia L. Harman, PropertyCasualty360.com