Originally Published in Corporate Counsel | March 13, 2016 | By Jan Wolfe
Cybersecurity is the top risk facing companies, but a majority still aren’t prepared for the legal fallout from a cybersecurity incident, according to a survey of general counsel conducted by Consero Group in partnership with AegisAdvantage.
For the survey, titled the Global General Counsel Data Survey, Consero asked 66 senior legal executives to select their top areas of risk. Cybersecurity led the poll, with 52 percent of respondents naming it a major risk, followed closely by data privacy at 50 percent. Bribery and corruption followed at 34 percent.
Despite this concern of security and privacy, only 29 percent of respondents said their organization is “prepared to handle the legal repercussions of a cybersecurity incident.” About a third said their company has been hit with a data or cybersecurity breach in the last year.
Consero also asked GCs whether their companies have an insurance policy to cover breaches. Over two-thirds said they have policies in place, and another 3 percent said they are in the process of obtaining them. “While this is a step in the right direction, the legal department’s full involvement will be required to handle such cases,” Consero wrote in its report on the survey.
Most of the GCs surveyed said they are involved to some degree in their company’s cybersecurity efforts. But 19 percent said they are not involved at all.