January 9th, 2013
by Daniel Pelc
Organizations seek to mitigate risk. These activities are interwoven into the daily objectives of corporate executives. As much as companies try to defend their positions, the ground can erode beneath their feet. A security breach, most often, triggers a series of woes to the company, including recovery of data, rebuilding internal processes and re-establishing the company?s public image. However, corporations face steep liability challenges when a breach occurs. When planning for litigation, organizations may overlook or underestimate their potential exposure through their data security practices. In Doe v. Netflix, Inc., (N.D. Cal. 2009), a class action sought $2,500 in damages for each of the 2 million subscribers affected by an inappropriate release of information. Ultimately, Netflix settled at a cost of $9 million. Other examples of liability are also readily available. Legal departments are frequently examining their liability through discovery readiness engagements. Discovery readiness measures a company?s ability to defensibly respond to a large discovery request in litigation. Even the slightest hiccup in discovery may expose the company to liability through sanctions and other legal repercussions. Many of these readiness processes mirror the type of examination that occurs in data breach prevention exercises or data breach readiness engagements. In both cases, clients examine the people, processes and related technologies that could lead to liability concerns. ?While you?re under the hood, you might as well check the oil.
Source: http://securityblog.verizonbusiness.com/2013/01/09/e-discovery-readiness-engagements/
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