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Don't risk
your company's reputation
A recent survey conducted by WGA shows that 31% of
public
companies do not have effective safeguards or processes
in place to monitor or respond to a privacy breach or
exposure, of both internal employees or consumer data.
Information
Risk Management services address threats to your
company’s value – not just its data.
Federal regulations including the Bank Secrecy
Act, HIPAA, GLBA, and state laws such as CA 1386
establish severe penalties for those organizations which
fail to protect sensitive consumer and financial data.
Many require immediate disclosure of any
infractions, even if it cannot be determined that the
data accessed was used inappropriately.
The associated negative publicity often results
in a 20-30% decrease in share value within thirty days.
If
your organization believes that information security and
privacy aren’t important to the company’s financials,
consider this: In 2005, ChoicePoint, a well known consumer
information broker, saw its share price tumble from
$48
per share to just over $36 - a loss of over $300
million in market value, in the wake of news that it had not
properly safeguarded consumer data. The company
was also ordered by the FTC to pay $15 million in fines
and improve its risk management structure.
Years later, ChoicePoint
still trades well below its pre-disclosure price.
Graham-Leach-Bliley and HIPAA
Healthcare and financial institutions have been subject
to privacy laws similar to those in effect in Europe for
several years. Many organizations, however, still do
not fully understand what is required to comply with
these laws, exposing them to large fines and other
sanctions. WGA’s team members have assisted healthcare
and financial institutions with their privacy practices
and procedures.
SB 1386 - Privacy Legislation in California
California is leading the way in privacy protection,
with over 14 such laws enacted by its legislature. One
law in particular has far-reaching implications for
companies regarding the risks of exposing personal data,
even if safeguards are in place to prevent the
exposure. SB 1386 requires businesses to notify
customers if their personal data is compromised in a
security breach or other lapse.
As a result of this
legislation, UC Berkeley spent $200,000 notifying former
students and applicants when hackers gained access to a
server containing a database with their Social Security
numbers. This was required by law, even though it
appeared that the hackers were simply using the server
for storage space, never actually accessing or
downloading the sensitive data.
Privacy Regulatory Compliance
State
laws such as SB 1386 have prompted many companies to
report security lapses that may have otherwise gone
unreported. The sheer magnitude of these breaches has
prompted other states and the federal government to pass
similar laws. The cost of notifying thousands of
customers of a security breach can easily reach hundreds
of thousands, even millions of dollars. Many companies
would not and could not operate without insurance to
protect the organization from unexpected catastrophic
loss. WGA can help protect your company’s future –
today.
How WGA Can Help
As former executives,
WGA's core practice team members were responsible for
information assurance services at multinational
financial institutions, telecommunications
firms, and other organizations where data
security and privacy were paramount. We will
assess the current environment, identify
potential weaknesses, and assist you addressing
any areas of concern.
Gone are
the days when protecting client information was as simple as
locking your doors. Computers must be properly
secured, and even backup media must be safeguarded at all
times, including during transit to offsite storage
facilities, to ensure they do not end up in the wrong hands.
Whether you’d like independent verification of the
effectiveness of your current security and privacy controls
or you need a framework developed specifically for your
organization, you can trust WGA to provide you with the
expertise you need to protect your most valuable information
assets.
To find
out more about WGA's work
in this capability area, please
contact the practice. |
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