How to Protect Your Business from Cyberattacks

By Mark Leung and Sukhi Ram

(Originally published in DLD Financial's quarterly newsletter, MONEY THOUGHTS – Q2 2024.)

The recent high-profile ransomware attack on London Drugs highlights an ever-present threat in today’s commercial world. Cyberattacks can halt company-wide operations, cause adverse ripple effects from supply chains down to company staff and even customers, and ultimately cost millions of dollars. Unfortunately, the risk of a cyberattack is only increasing in our digital age. Threats can originate from any email, text, or phone call, with one wrong action leading to a breach. 

With this looming threat, the question becomes, “Are you prepared?”

Fortunately, businesses are not without a defense. Here are several key strategies to mitigate against the impact of a cyberattack:

• Put together an Incident Response Plan: Develop a practical, easy-to-understand plan covering various scenarios (e.g., ransomware). Regularly practice and test it with all teams, including executives, to identify weaknesses and build familiarity and competencies.

• Purchase Cyber Insurance: Ensure your business has a comprehensive cyber insurance policy that covers a wide range of scenarios. Make sure you meet coverage requirements and maintain documentation of preventive measures.

• Minimize Risks from your Vendors: When it comes to your vendors, include data protection provisions in your contracts, evaluate their security standards, and ensure they have cyber insurance. If possible, conduct annual reviews and audits, requiring your vendors to provide evidence of incident response testing and penetration tests.

• Build a Compliance Team: Find and connect with breach coaches, privacy lawyers, and cyber forensic teams, so that you can promptly retain their services in the event of an incident. Engage industry experts for prevention and crisis management advice.

• Establish a Security Culture: Meaningful action can only come from the top. Implement top-down training on security best practices, phishing threats, and sensitive information protection. Well-informed employees reduce the risk of security incidents. Ensure they know how to report and respond to incidents.

Does this list seem daunting? If so, don’t worry. Start small with what you can do or know how to do. As for the rest, reach out to a professional who can help. Even an earnest conversation with a privacy lawyer or cyber insurance broker is a great starting point. 

Still don’t know where to start? Feel free to reach out to us at Interhouse, a new and innovative law firm that provides legal services through its roster of seasoned and skilled former General Counsels and Chief Legal Officers.

Come say hi at hello@gointerhouse.com.