The recent theft of monies from private internet banking accounts using sleuth software highlights how business risk has altered dramatically since the adoption of the internet as a medium for business transactions.
Gustav Roth, head of Alexander Forbes’s Legal Risk Services team (AFB), says any business that makes use of e-mail, intranet or the internet has a significantly increased risk of being exposed to actions that could leave it legally liable for any damages that result.
“Information, in all its forms, is arguably one of the most important assets of an organisation.”
In this context “information” refers to more than just technology. It refers to the integrity, availability and confidentiality of the lifeblood of the organisation, including business trade secrets, contractual relationships, financial and operational systems, client and transaction details and information published to the public,” says Roth.
He says due to the speed, efficiency, accessibility and cost-associated benefits of electronic communication and storage mediums, more and more organisations are increasingly dependent on these electronic mediums to conduct their business.
As a result they are exposed to increased risk in the form of intentional or unintentional actions. Such actions include the unintentional release of confidential client, supplier or other third party information, negligent mis-statements, criminal or delictual liability and a raft of other exposures around e-mail, internet and intranet usage and abuse.
Roth said attacks on corporate data are on the rise and the sophistication of these attacks continues to increase at alarming levels.
“In the first quarter of 2003, a staggering number of 42 586 incidents have already been reported. However, an incident may involve one site or hundreds [or even thousands] of sites. Also, some incidents may involve ongoing activity for long periods of time,” says Roth.
“Corporate legal services are increasingly focusing on identifying where this legal risk resides in an organisation, and then at identifying measures that can be put in place to minimise a client’s risk exposure,” he said. – I-Net Bridge