DAC Beachcroft | Insurance, Privacy & Data Security News | July 2014
July 2014 update
Catch up with the latest cyber risk legislation and regulatory developments with the DAC Beachcroft Adviser Newsletter
Data protection and privacy is only one element of cyber risk and there have been a number of recent public and private sector initiatives which highlight the need to mitigate cyber risk from a business disruption perspective.
This month, David Cameron pledged £1.1 billion to tackle the "unseen enemies" of cyber-crime and cyber terrorism. He acknowledged that it is no longer possible to "defend the realm from the White Cliffs of Dover" and this investment is the latest aspect of the UK Government's drive to improve cyber security and protect critical national infrastructure from cyber-attacks. His announcement comes shortly after the launch of the UK Government's Cyber Essentials scheme which is designed to encourage all businesses, big and small, to properly consider and mitigate their exposure to cyber risks.
The EU is also taking cyber security very seriously. The Cybersecurity Directive, which is likely to come into force in 2015 or 2016, is designed to protect critical infrastructure which, if destroyed, would significantly impact a Member State.
In the US private sector, major Wall Street banks are proposing a cyber-war council to defend against future cyber-attacks following concerns that their systems may not repel or recover from a significant cyber-attack. Their concerns include the possibility that a cyber-attack on the electrical grids on which financial markets rely, could cause widespread panic and trigger runs on banks. The "cyber war" rhetoric is an acknowledgment that the impact of cyber threats can be just as catastrophic as physical threats.
Whilst it remains to be seen whether these initiatives will be successful in bolstering cyber security, they will at least publicise the risks and the importance of taking appropriate mitigation strategies.
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Seth Berman, executive managing director of Stroz Friedberg, believes that law firms will have to pay more attention to cyber security.