Life’s a breach – the penalties of a data breach for professional services firms

It’s not a matter of ‘if’ a firm might be breached, but ‘when’. Data breaches are unavoidable. At least 80 of the 100 biggest law firms in the US have been hacked since 2011, and firms of all sizes are targets – in 2016, 40% didn’t even realise they’d been hacked.

Data breaches and phishing are among the most significant cyber threats to professional services firms. According to Ponemon’s 2018 ‘Cost of a Data Breach Study’, the average financial cost of a data breach is more than $7 million. The reputational damage is also significant. Client confidentiality is a core value in the professional services sector, so losing it can have a devastating impact – a firm does not even have to suffer a breach to suffer the consequences of cyber vulnerability.

Both the NYDFS (New York State Department of Financial Services) Cybersecurity Regulation and EU’s GDPR (General Data Protection Regulation) require organizations to report certain types of personal data breach within 72 hours of becoming aware of the breach.

Identifying the breach, who has been affected, how extensive the damage is and how the breach happened in the first place – all within 72 hours – is not easy, especially when firms want to use this time to fix the damage caused by the breach. However, with the right planning, preparation, and resources in place, your firm will be in a good position to respond.

Keep calm and prepare for a breach

When an organization has been breached, there is often an air of panic and urgency. Without a proper plan in place, it’s a potential PR disaster. Firms should be preparing now to ensure that they have the roles, responsibilities, and processes in place for reporting a data breach.

To help you develop a roadmap for a successful and secure organization, IT Governance has developed a portfolio of data breach solutions to align with your firm’s business requirements and budget.

Protect your firm from the financial penalties and losses associated with data breaches and save up to 20% on our portfolio of data breach solutions.

Get #BreachReady

Get #BreachReady

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