Cybersecurity: Legal implications and risk management
In an increasingly interconnected world, cyber risk is firmly at the top of the boardroom agenda, and having an effective data breach response programme is no longer optional.
Cybersecurity crisis management
The internet knows no borders, neither do we. Our global team of cybersecurity response experts work across borders, combining data protection, privacy, regulatory, white collar and litigation expertise in order to deliver seamless crisis management and legal advice, whenever and wherever needed.
The digitalization and free flow of information has transformed global business. However, with increased opportunities have come new and increased risks, together with complex legislative regimes that can vary significantly by jurisdiction, and are constantly evolving. Even the most conscientious company can become the victim of a cybersecurity incident, such as the stealing of client or company information, or a ransomware attack. We work with a wide range of multinational companies to manage their cybersecurity risks, developing rapid response plans, providing time-critical crisis management advice, and working with clients to manage any resulting legal issues that may arise.
Breach of contract
M&A due diligence
Business Continuity Plan
Requests for data
Data Protection Authority Complaints
Group litigation orders
Data Protection Authority
Privacy & data protection
Law Enforcement Involvement
Preservation of Evidence
Legal (internal and external)
Work with forensic investigators to:
Identify and contain breach
Maximise legal privilege coverage
Contact crisis team
Bring in external partners
Identify key risks and priorities based on nature of breach
Assess notification requirements
Shaping the future of digital and cybersecurity governance
In this brief three-minute video, London-based partner Lawson Caisley, Chair of White & Case's Global Cyber Risk Committee, shares his insights on governing cyber risk at the corporate level and some of the challenges of cyber risk management in the boardroom. Filmed at the Digital Directors Network (DDN) Domino 2023 conference on digital and cybersecurity governance.
In this short three-minute video, Washington, DC–based partner F. Paul Pittman discusses the implications of the proposed new SEC rules on cybersecurity governance and what corporate boards can do now. Filmed at the Digital Directors Network (DDN) Domino 2023 conference on digital and cybersecurity governance.
The potential for cybersecurity threats and attacks looms large and the technology companies developing new products and services play a constant game of cat-and-mouse with hackers and cybercriminals for control of cyberspace. Here are six points to consider when analyzing cybersecurity risks and protections.
Directors face personal liability over cybersecurity failures
In an article for The Times, White & Case partner Lawson Caisley discusses why it could become increasingly common for UK directors to "face personal liability and regulatory censure as a result of their company suffering or mishandling a cyberbreach".
Director liability for cyber breaches: transatlantic warning signs?
Two legal cases in the US in the past month suggest that regulators and prosecutors are becoming more determined to take personal action against directors and senior executives who fail to deal adequately with cyber security breaches.
AAA plc & ors v Persons Unknown: Cyber Activism or Blackmail?
In recent years, demands for payments in cryptocurrencies have become the ransom of choice for cyber extortionists and other online frauds. As a result, the English Court's powers are increasingly being called upon.
Cybersecurity Enforcement: New York Department of Financial Services issues first penalty under Cybersecurity Regulation
Consistent with its increasing activity in the cybersecurity enforcement space, in March 2021, the NYDFS issued its first penalty under the Cybersecurity Regulation. This client alert explores the settlement and offers takeaways on the areas of focus by the NYDFS in enforcement actions under the Cybersecurity Regulation.
Before the Dust Settles: The California Privacy Rights Act Ballot Initiative Modifies and Expands California Privacy Law
Hot on the heels of the California Attorney General's rulemaking process for the California Consumer Privacy Act ("CCPA"), California voters have passed a ballot initiative to expand and create new privacy rights for consumers.
Recovering the ransom: High Court confirms Bitcoin status as property
The High Court has determined that Bitcoin (and other similar cryptocurrencies) can be considered property under English law, and could be the subject of a proprietary injunction. The Court granted the injunction to assist an insurance company to recover Bitcoin that it had transferred in order to satisfy a malware ransom demand.
Navigating Privacy and Cyber Incident Notification and Disclosure Requirements
Organisations are facing increasing uncertainty in assessing global notification and disclosure obligations and making a determination of whether to notify or disclose a privacy violation or security incident in today's complex regulatory environment. This article offers six steps companies should consider when navigating this complex process.
Proposal on the Application of the NIS Regulations post-Brexit
This article examines the impact of the UK Network and Information Systems Regulations 2018 (SI 2018/506) (NIS Regulations) on organisations post Brexit and their obligations under applicable cybersecurity law.
The COVID-19 crisis has exposed many companies to more cyber threats. Tim Hickman and John Timmons discuss what businesses need to do should a major incident occur.
Q: What impact did lockdown have on companies’ exposure to cyber-threats?
A: Organisations had to rapidly adopt new systems, processes and procedures to accommodate remote working, and aggressively roll out existing solutions not widely used pre-lockdown. With everybody suddenly operating from home, patterns of work, and therefore network usage, changed too. The attack vectors changed, as did the points of weakness in organisations’ information security. All this had a major impact on risk and management of cyber-threats. The sheer speed at which organisations had to adapt meant many did not have the time to do their standard diligence on providers and suppliers, which led to the deployment of solutions based on incomplete information and the possibility of latent security flaws. If these issues are not picked up quickly and acted upon, organisations are susceptible to problems down the line and greater exposure to cyber-threats.
Q: If a major incident does occur, what are the immediate steps an organisation should take to respond? A: It’s something every executive fears: that call in the middle of the night saying that there has been a major cyberincident. The speed of response is vital; as much information as possible must be gathered in those very early moments to understand what information and systems have been compromised. Has this happened before and does it indicate a systemic issue? What is the risk to the organisation, its reputation and its customers? Establishing that initial snapshot assessment is incredibly important as it will drive not only the prioritisation of the response, but the entire process. If an incident is correctly identified as high risk at the onset, the response timeline will accelerate, with organisational resources deployed more appropriately.
Q: Once that initial risk assessment is complete, what should happen next? A: Principally, it’s about damage limitation and controlling the incident, so understanding the mitigating factors that might help to reduce risk to the business is key. If information has been lost or stolen, for example, was that information subject to encryption? Is it in a format that would be useless to a third party? Did the incident involve theft of a device that has since been recovered? If, following that risk assessment, you conclude that it is a major, high-risk incident, then the response must be fast. It may be necessary to first internally escalate by notifying the executive committee or wider board. External legal counsel should be involved as early as possible so they are on call to respond whenever needed throughout the incident. Engaging legal counsel has the added benefit of establishing privilege in certain circumstances, which can protect sensitive discussions from future disclosure should there be an investigation or litigation. Forensic IT experts are also an essential part of the damage limitation process, particularly in identifying the threat, understanding what went wrong and taking the appropriate measures to stem the tide. Regulators need to be informed as soon as possible, as should affected individuals, where organisations are legally required to do so.
Q: What elements of response are sometimes overlooked? A: Public relations plays an often overlooked, but absolutely crucial, role in controlling the narrative and allowing the organisation to present the best and most accurate representation of the incident. At each stage of the response process, it is also vital to preserve evidence and record details of every action and decision that was made. You may look back and determine that, in hindsight, poor decisions were made, but if you can show precisely what information guided those decisions at the time, it can be beneficial in the event of an investigation or litigation. Of course, excessive retention of records and information can also present challenges, but legal counsel will be able to assist in striking the right balance.
Q: How does White & Case support companies in this important area? A: Cybersecurity incidents do not respect national borders. Companies are often affected in multiple jurisdictions, with different regulators and laws in relation to disclosure obligations and timeframes. White & Case’s global Cyber Incident Response team has extensive experience working with clients that have a multi-jurisdictional footprint. While we work with these clients through all stages of the preparedness, response and review process, we are uniquely positioned to assist during the critical incident response phase. This is due to our global presence and cross-disciplinary team of cyber-experts who are constantly collaborating with each other and with PR, IT forensics, internal compliance and incident response teams, helping to deliver crisis management and legal advice whenever and wherever it is needed.
This article was published in a slightly different form in Raconteur’s "Business Continuity and Growth" special report, The Sunday Times, on 2 August 2020. For more information please visit whitecase.com/cybersecurity.
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