INVESTOR BREAKFAST 2018 SERIES Cybersecurity: Protecting your valuable business information
• Chris Winczewski , founder of Blueshift ID, an IT security firm
a data breach, companies aremaking their first call to their outside counsel so the results of an internal investigations can fall under the umbrella of attorney-client privilege. It’s oneway to prevent proprietary information from ending up in public police reports. Most companies don't have adequate cyber insurance, assuming a rider to their general liability policy will suffice. Those policies protect third parties, but they don’t cover business interruption, attorney fees and other IT costs, Muth says. A burgeoning security measure more companies are exploring is blockchain technology, which allows digital information to be distributed but not copied. Developed for cryptocurrencies in the past decade, blockchain offers a secure way to protect data from hackers in some situations, Winczewski said. However, blockchain technology is not a “magic bullet” that solves every cybersecurity problem. It is a powerful tool that has great potential in certain environments. If you want to learn more or cybersecurity resources inWest Michigan, or connect with TheRight Place team, contact JenWanglerat 616.771.0326 or wanglerj@rightplace.org .
One of the biggest challenges facing companies in this digital age is protecting critical data and intellectual property from hackers. The average cost of a data breach in the U.S. is $7.3 million, reflecting a 30 percent hike since 2013, according to a 2017 analysis by the Ponemon Institute and IBM. The majority of the costs are indirect expenses, such as staff hours, lost goodwill, and “churn.” One third of costs are direct. They include money spent on outside counsel and experts, ID theft insurance, and notifications. This was the focus of our most recent Right Place Investor Breakfast event. On June 20th, over 125 business leaders and Right Place investors heard from three industry experts on the subject: • Ryan Bonner , director of compliance at Brightline Technologies Inc. in Brighton, MI • Jeff Muth , an attorney with the law firm of Miller Johnson
• Jeff Williams , managing partner at Atomic Object, moderated the panel In the next two years, expect to see an uptick in regulatory standards and requirements when it comes to cybersecurity, says Bonner. The European Union’s recently approved General Data Protection Regulation “GDPR” has some of the strictest regulations in the world, with potential multimillion- dollar fines for violators. GDPR requires notification of a data breach within 72 hours of discovery. It also gives customers the right to be forgotten, which means their data must be purged from a system upon request. Often, a company’s cybersecurity exposure can be mitigated with low-tech solutions, such as policies and procedures, employee training, risk transfer, and attorney-client privilege. The best first step in protecting security is beefing up privacy policies and procedures. Adata breach response protocol should be part of employee training and updated every year. After the discovery of
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INVESTOR BREAKFAST
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