Cybersecurity Laws
and Business
Liability: Ensuring
Data Privacy and
Protection
Navigating the complex landscape of digital security is essential for
any business. This presentation will explore the growing threat
landscape, key cybersecurity laws, and best practices to protect your
business and customer data.
by Aramati Ritesh Reddy
The Growing Threat
Landscape: A Business
Imperative
1 Escalating Costs
Cybercrime costs are projected to reach \$10.5 trillion annually by 2025.
2 High Breach Costs
The average cost of a data breach in the US in 2023 was \$9.48 million.
3 Business Impact
60% of small businesses that suffer a data breach go out of business within
six months.
4 Ransomware Surge
Ransomware attacks increased by 13% in 2023, with average ransom
payments reaching \$812,360.
Key Cybersecurity Laws: A Regulatory Ov
GDPR CCPA/CPRA HIPAA NY SHIELD Act
Applies to organizations Grants California residents Protects sensitive patient Requires reasonable data
processing data of EU rights over their personal health information. Fines security measures. Fines
residents, regardless of data. Penalties up to \ up to \$1.9 million per up to \$5,000 per
location. Fines up to 4% of $7,500 per violation. violation, per year. violation, per year.
annual global turnover or
€20 million, whichever is
higher.
Understanding Business
Liability: Legal Consequences
of a Breach
Financial Liabilities
Fines, penalties, legal fees, and compensation to affected parties.
Reputational Damage
Loss of customer trust and brand value. Can lead to lost revenue, reduced investment, and
difficulty attracting new customers.
Business Interruption
Downtime, recovery costs, and lost revenue. Can disrupt critical operations and impact
customer service.
D&O Liability
Personal liability for corporate negligence in cybersecurity.
Implementing a Robust
Cybersecurity Framework:
Best Practices
NIST ISO 27001 CIS Controls
Cybersecurity An international standard for A prioritized set of actions to
Framework
A widely adopted framework information security protect your organization and
providing standards and management systems data.
guidelines. (ISMS). Certification
demonstrates commitment
to security.
SOC 2
Auditing procedure that
ensures your service
providers securely manage
your data.
Key Cybersecurity Measures: Practical Steps for Pr
Data Encryption
Protect data at rest and in transit.
MFA
Add an extra layer of security to accounts. Google found that MFA blocks 99.9% of automated attacks.
Security Audits
Identify vulnerabilities and weaknesses.
Employee Training
Educate employees about phishing, social engineering, and other threats.
Incident Response Plan
Have a plan in place to respond to and recover from a cyberattack.
Data Privacy: Protecting Customer Informa
Data Minimization 1
Collect only necessary data.
2 Data Retention Policies
Establish clear rules for how long data is stored.
Privacy Policies 3
Be transparent about data collection and usage
practices.
4 Consent Management
Obtain explicit consent for data processing.
Data Subject Rights 5
Honor requests for access, rectification, and erasure.
Cybersecurity
Insurance: Mitigating
Financial
Coverage Risk
Data breach response costs, legal fees, fines, and business
interruption losses.
Policy Considerations
Coverage limits, exclusions, and due diligence requirements.
Cost
Premiums vary based on industry, size, and security posture.
Market Growth
The cybersecurity insurance market is expected to
reach \$22 billion by 2027.
Case Studies: Learning from Real-
World Examples
Colonial Pipeline
Marriott Data Breach (2018) SolarWinds Supply
Ransomware Attack Chain Attack (2020)
500 million guest records
(2021)
compromised due to inadequate Critical infrastructure disrupted due Sophisticated attack targeting
security measures. to a ransomware attack. software supply chain. Affected
thousands of organizations,
including government agencies.
Conclusion: Building a
Culture of
Cybersecurity
Cybersecurity is not just an IT issue; it's a business imperative.
Proactive measures are essential to protect your business and
customer data. By prioritizing cybersecurity, you can build trust,
enhance your reputation, and ensure long-term success.
