General Counsels: Facing Data Privacy & Cybersecurity with a Multi-Dimensional Game Plan

General Counsels (GCs) face several significant challenges when it comes to data privacy and cybersecurity. These challenges stem from the evolving nature of technology, regulatory landscapes, and the increasing complexity of cyber threats. Here are some of the biggest challenges they encounter:

1. Regulatory Compliance: The regulatory environment for data privacy and cybersecurity is complex and constantly evolving. GCs must navigate a patchwork of local, national, and international regulations such as GDPR (EU), CCPA (California), and other emerging laws. Ensuring compliance across various jurisdictions can be particularly challenging.

2. Data Breach Management: In the event of a data breach, GCs must manage the legal and regulatory fallout, including notifying affected individuals, regulators, and sometimes even the media. They need to coordinate with IT and cybersecurity teams to understand the breach's scope, impact, and response measures.

3. Risk Assessment and Mitigation: GCs must work with IT and cybersecurity teams to assess and mitigate risks associated with data privacy and cybersecurity. This involves understanding and addressing vulnerabilities, implementing appropriate security measures, and ensuring that policies and procedures are in place to protect sensitive data.

4. Cross-Department Coordination: Effective data privacy and cybersecurity management often requires collaboration across multiple departments, including IT, compliance, legal, and executive leadership. GCs need to facilitate communication and ensure that all departments are aligned on policies and procedures.

5. Incident Response and Crisis Management: When a cybersecurity incident occurs, GCs play a critical role in managing the legal aspects of the response. This includes coordinating with outside counsel, handling legal claims, and dealing with potential litigation. They also need to ensure that the company’s incident response plan aligns with legal requirements.

6. Vendor Management: Many companies rely on third-party vendors for various services, which can introduce additional risks. GCs need to ensure that vendor contracts include appropriate data protection clauses and that vendors adhere to cybersecurity standards.

7. Training and Awareness: Ensuring that employees are aware of and comply with data privacy and cybersecurity policies is crucial. GCs need to support ongoing training and awareness programs to minimize the risk of human error leading to security breaches.

8. Evolving Threat Landscape: The threat landscape is constantly changing, with new types of cyberattacks emerging regularly. GCs must stay informed about the latest threats and adapt their strategies accordingly.

9. Balancing Business Needs and Privacy: There’s often a tension between business objectives and privacy considerations. GCs must find ways to support business goals while ensuring that data privacy and cybersecurity standards are maintained.

10. Litigation and Liability: As data privacy and cybersecurity issues increasingly become a source of litigation, GCs must prepare for potential legal challenges, including class-action lawsuits and regulatory fines. They need to ensure that the company is prepared for such scenarios and has appropriate insurance coverage.

In summary, the role of a GC in managing data privacy and cybersecurity involves a multifaceted approach that combines legal expertise with a strategic understanding of technology and risk management. The ability to navigate these challenges effectively is critical for protecting the company and maintaining regulatory compliance.