Cybersecurity and the duty of care: a top 10 checklist for board members

by DLA Piper
Contact

Visibility on information security, including cybersecurity as well as physical security aspects, is increasingly permeating corporate life.  The relatively new SEC requirements for public disclosure of cybersecurity incidents are just one example. 

As directors prepare to fulfill their duty of care in an informed way, what are the issues that matter today?  The following checklist was created to help outside directors understand the cybersecurity issues that matter to boards today based on information from panel discussions and individual directors: 

 

1.  Who’s in charge?  Who is the company’s Chief Privacy Officer and Chief Information Security Officer?  What are the charters and functions of each position, and what is the interaction between the privacy compliance and information security teams?  Is there a check-and-balance on the Chief Information Officer – for instance, is the CISO and CTO one and the same person, or are these responsibilities divided, and does the CISO report to the CIO or have an alternate potential reporting route?

2.  What is the role of board oversight?:  Who is the lead director on information security and is that position informal or formal?  Is at least one outside director sufficiently technically educated to be able to lead board discussions and questions on information security?  Does information security oversight rest with the Audit Committee and, if so, is it part of the Audit Committee annual work plan?  Does the Audit Committee in practice actually regularly review information security issues?

3.  Who are your likely adversaries?  Who is most likely to want access to the company’s systems?  What level of sophistication, geographic scope and motives (e.g. economic/embezzlement, identity theft, trade secret theft) may these adversaries have?

4.  Does the company have an incident response plan?  What are the protocols for informing customers, suppliers, internal constituencies and regulatory bodies (including SEC reporting) on information security incidents?  Has the company identified relevant internal and external (such as technical, legal, public relations) core team members?  Has the company set up liaisons with law enforcement authorities?

5.  What are the BYOD protocols?  Is the company a bring-your-own-device (BYOD) environment?  If so, what the level of safeguards is applied to such devices?

6.  What does the network map of the company look like?  What data is stored on which servers and controlled by whom?  Does the company triage/organize server storage functions?  What information security functions are provided by contractors, and what is the level of assurance in the integrity of those contractors?

7.  Has the company assessed the inside threat?  What access and administrative rights exist?  Does the company have a policy on thumb/USB drives or other mass storage devices and use/scanning?  Does the company monitor internal networks for inappropriate file access or sharing?

8.  What is the interplay between physical and cyber security?  Does the company actively manage both physical and cyber security?  What physical security measures are used to enhance cybersecurity?  What procedures exist for terminated employees’ deactivation?

9.  How does the company interact with suppliers, customers and partners?  To what extent does the company provide products “downstream” that if compromised or misused would affect the company?  How is the company assured that third-party solutions, including software, are free of issues and include indemnification for potential flaws?

10. What insurance does the company carry for cybersecurity?  What are the policy limits and exclusions on insurance coverage?

Written by:

DLA Piper
Contact
more
less

DLA Piper on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.
Feedback? Tell us what you think of the new jdsupra.com!