Since companies often answer to multiple authorities, the possibility exists for overlapping and even conflicting obligations. Fortunately, there is good news: cybersecurity regulations and cybersecurity best practices are all converging around a common set of fundamental principles. By following generally accepted best practices for securing your company’s data, such as risk-based penetration testing and multi-factor authentication, you are also likely to be in compliance with both existing and proposed regulations.
While different sets of rules and best practices may differ depending on the applicable industry and jurisdiction, taking the following fundamental steps will help position your company to meet any standard:
- Perform a Cybersecurity Risk Assessment. Regulators and cybersecurity experts agree that a company’s own personnel are in the best position to know their company’s cybersecurity risk, which can vary greatly depending on the company’s business type, size, customer base, type of data held, and many other factors. Assessing your company’s risk is challenging, but it must be performed thoughtfully and thoroughly because virtually your entire cybersecurity program will be tailored to your risk assessment.
- Establish a Cybersecurity Policy. A cybersecurity program does not exist unless it is written down. Regulators and cybersecurity experts agree that it is critical to establish and maintain a written and regularly updated cybersecurity policy that is appropriate to your company’s risk assessment. This policy will be a primary source for you to demonstrate to the Board of Directors, regulators, insurance carriers, and customers or clients that your company is diligent in creating, executing, and adhering to a robust cybersecurity program.
- Designate a Chief Information Security Officer (CISO). Charging a single qualified individual with responsibility for cybersecurity ensures clarity and accountability. For smaller companies, the CISO function can be outsourced.
- Conduct Penetration Testing and Vulnerability Assessments. While different sets of best practices and regulations vary somewhat on how frequently and in what manner companies should conduct penetration testing and vulnerability assessments, they all agree these measures are an important part of a robust cybersecurity program.
- Deploy Multi-Factor Authentication. All authorized users should use multi-factor authentication, such as entering both a password and a code texted to a cell phone, particularly when logging in from outside the network. Under what circumstances multi-factor authentication may be required will frequently depend on your company’s risk assessment.
- Encrypt Your Data. All non-public data that is critical to your business or to your customers or clients should be encrypted while in transit or at rest. Establish policies and procedures governing encryption based upon your company’s risk assessment.
- Prepare an Incident Response Plan. All companies have had or will have a cybersecurity incident of some kind. Many companies have one or more incidents they are not even aware of. How the company responds to such an incident may later be subject to intense scrutiny by regulators, investigators, and potential plaintiffs. Maintaining and following a written incident response plan that covers subjects such as detection, recovery, and notification procedures will help your company recover more quickly and fare much better in the ensuing scrutiny. Note that no incident response plan is complete until it has been tested in a table top exercise or similar drill.
Establishing cybersecurity programs and getting them right is a challenging, but necessary exercise. It is always a good idea to consult experts in the fields of cybersecurity and regulation
when formulating and updating these programs. But understanding and thinking through these common principles will help ensure that you are complying with both cybersecurity best practices and the law.
About the Authors
Daniel M. Burstein
Senior Managing Director
Daniel M. Burstein oversees the Financial Institutions practice for Guidepost Solutions. As senior managing director, he specializes in the areas of regulatory compliance, investigations, and monitorships. Previously, Mr. Burstein served as Executive Deputy Superintendent and Acting Chief of Staff for the New York State Department of Financial Services. He has more than 13 years of experience in the areas of regulatory investigations and enforcement, compliance, commercial litigation, and internal investigations.
Kenneth C. Citarella, JD, MBA, CFE, CIPP/US
Senior Managing Director, Investigations and Cyber Forensics
Kenneth C. Citarella
has more than 30 years of experience investigating and prosecuting white collar crime and computer crime. Previously, he had a distinguished 28-year career as a prosecutor in the Westchester County, New York District Attorney’s Office. A pioneer in computer crime prosecution, Mr. Citarella obtained convictions for computer intrusions, malicious software attacks, a software time bomb, spamming, digital child pornography, and the use of the Internet for child exploitation, among other cases.