Earlier this year, the National Association of Corporate Directors released an updated version of its Director’s Handbook on Cyber-Risk Oversight. The NACD’s issuance of an update to its Handbook in just three years signals that cybersecurity-related governance expectations of companies and directors are evolving. While the use of and compliance with the Handbook is not mandatory, the Handbook is influential in shaping governance practices and thus it is prudent for those involved in corporate governance to familiarize themselves with the changes.
Malware was recently identified that appears to have been designed and deployed by a nation-state to target and shut down electric grids. According to published reports, this malware currently appears to be capable of attacking the European grids, and parts of the Middle East and Asia grids, by targeting the specific industrial control system network protocols used to operate those grids. With small modifications, the malware reportedly also appears to be capable of attacking the North American power grid, as well as other industries that use ICS networks (e.g., oil, gas, water, data) around the globe. This post discusses the malware as well as vulnerability management.
The Federal Financial Institutions Examination Council recently released an updated version of its Cybersecurity Assessment Tool, which, according to FFIEC, is designed to help the financial institutions voluntarily using the tool to “identify their cyber risks and determine their cybersecurity preparedness.” We explore the changes to the CAT in this post.
Please join us for our June 2017 Privacy and Cybersecurity Events.
Join us for a discussion of hot topics in Federal Trade Commission (FTC) and state consumer protection enforcement. Partners Bret Cohen, Meghan Rissmiller, and Steven Steinborn will cover recent developments and enforcement trends in data privacy/security, advertising/endorsements, and claim substantiation in practice before the FTC and state authorities.
The Hong Kong Securities and Futures Commission has issued a paper containing proposals to introduce cyber security guidelines under the Securities and Futures Ordinance applicable to internet brokers. Comments are open through 7 July 2017.
“Connected” products—not just traditional IT products—are increasingly subject to cyber attacks globally. The question companies are (and should be) asking is no longer whether there will be an attack involving Internet of Things devices and infrastructure, but when. Join us on May 24 for the third installment of our 2017 IoT webinar series and get practical guidance from our international team of cybersecurity lawyers, who will present key elements of Hogan Lovells’ well-received client workshop on this rapidly evolving topic.
On 19 April 2017, the UK Government’s Department for Culture, Media and Sport (DCMS) published a report on cyber security breaches and how they affected UK companies in the last year. The report indicates that a number of UK companies have not implemented comprehensive cybersecurity policies or implemented strong safeguards to protect against cyber attacks. The General Data Protection Regulation — in particular the requirement to ensure all personal data is protected by appropriate technical and organisational measures — provides a real opportunity for any organisation to build a new cyber security strategy. Documenting the decisions taken on these measures will be useful for showing compliance with the new requirements for data protection by design and by default.
On 11 April 2017 the Cyberspace Administration of China published a circular calling for comments on its draft Security Assessment for Personal Information and Important Data Transmitted Outside of the People’s Republic of China Measures. Public comments are open through 11 May 2017.
Please join us for our March 2017 Privacy and Cybersecurity Events.
With cybersecurity issues evolving rapidly, every minute counts. Our new video series, Your Cyber Minute, is specifically designed for busy in-house counsel to gain practical perspectives – fast. This multi-part series is an extension of our Ready, Set, Respond resource portal and highlights today’s hottest topics in cybersecurity. Tune in to watch the first two installments and get the latest in what you need to know and how to better be prepared.
On 4 February 2017, the Cyberspace Administration of China issued a draft of the Network Products and Services Security Review Measures for public comment: the Draft Measures remain open for comments until 4 March 2017. The Draft Measures are follow-on legislation to China’s Cyber Security Law adopted on 7 November 2016, which will take effect from 1 June 2017.
To coincide with the London Conference on Cyberspace, the UK Government published its first UK Cyber Security Strategy paper in November 2011. Five years later in November 2016, the National Cyber Security Strategy 2016 was published listing three key objectives: defend, detect, develop.
The Internet of Things continues to draw broad interest from policymakers and regulators around the globe. Following on the heels of a major distributed denial-of-service attack in October 2016 that leveraged potentially millions of compromised IoT devices, members of Congress have sent letters to US federal agencies regarding the risks posed by insecure IoT devices and held a hearing about what if anything should be the US federal response to such IoT-driven cyberattacks. Against that backdrop, in November 2016 two US federal agencies have issued guidance on securing IoT.
In September, we proudly launched our online client cybersecurity resource portal: Ready, Set, Respond. The portal was designed by our cross-practice team of global practitioners to provide in-house counsel with the tools they need to not only prepare for the inevitable cybersecurity incident, but quickly and easily stay up to date on the evolving state of cybersecurity regulation around the world. Today, we’re taking a closer look at the Asia region with our partner Mark Parsons. Visit Ready, Set, Respond for more information or to take advantage of the tools and data available there.
500 German companies will be asked in the coming weeks by 10 German data protection authorities to complete an extensive and detailed questionnaire about their transfers of personal data to third countries. Companies must indicate how they ensure an adequate level of data protection for such data transfers. The questionnaire also covers the use of cloud services provided by U.S. entities. The enquiry and the questionnaire (but not the list of targeted companies) were published by the German DPAs on 3 November 2016.
Representatives from government and the private sector discussed the present state of healthcare cybersecurity, and experts discussed practical strategies for implementing the HIPAA Security Rule at the ninth annual “Safeguarding Health Information: Building Assurance through HIPAA Security” conference held from October 19–20, 2016 and co-hosted by the National Institute of Standards and Technology and the Department of Health and Human Services, Office for Civil Rights. Comprehensive, enterprise-wide risk analysis and risk management practices remained points of emphasis throughout the conference. Additional themes, which we outline in this post, also emerged.
Please join us for our November 2016 Privacy and Cybersecurity Events.
We are proud to announce that the Hogan Lovells Chronicle of Data Protection blog has been nominated in The Expert Institute’s 2016 Best Legal Blog Contest for the award of Best AmLaw Blog of 2016. Our editors at The Chronicle strive to provide you with the most relevant and timely legal news, practical legal analysis, and business insights relating to privacy and cybersecurity. We appreciate the recognition for this work and your continued readership.
The Federal Trade Commission recently presented an analysis of how its approach to data security over the past two decades compares with the Framework for Improving Critical Infrastructure Cybersecurity issued in 2014 by the National Institute of Standards and Technology and strongly endorsed by the White House. The FTC first explains how this question has a faulty premise, as the Framework is not designed to be a compliance checklist. Instead, in this new blog post, the FTC outlines how the FTC’s enforcement actions comport with the Framework’s five Core functions—Identify, Protect, Detect, Respond, and Recover—and emphasizes how both the Framework and the FTC’s approach highlight risk assessment and management, along with implementation of reasonable security measures, as the touchstones of any data security compliance program.
Please join us for our September 2016 Privacy and Cybersecurity Events.
The Department of Health and Human Services released guidance on July 11, 2016, intended to help the healthcare industry prepare for and respond to ransomware attacks. Specifically, this guidance clarifies: (1) that a ransomware attack is considered a “security incident” under HIPAA, and (2) that a ransomware attack will typically be considered a “breach” by HHS unless entities are able to demonstrate that there is a “low probability of compromise.” The guidance also clarifies that covered entities must implement the same risk assessment processes as they would with other types of cyber threats, including malware. At a time when ransomware attacks are on the rise, this guidance heightens the potential regulatory enforcement consequences of these events.
With attention to connected car cybersecuity issues increasing globally, the European Union Agency for Network and Information Security is leading the EU’s first bloc-wide initiative to identify cybersecurity rules of the road for connected cars. On July 13, ENISA announced a study aimed at creating a comprehensive list of cybersecurity policies, tools, standards, and measures to enhance security in next-generation automobiles.
The free flow of data is essential to an ever-growing segment of the global economy. Yet some policymakers and advocates, citing privacy concerns, have called for shutting off the faucet and restricting data flow, to the detriment of European consumers and European businesses, both small and large. After much debate, a major European court opinion, and at least one act of Congress to address the issue, a solution is at hand that will enhance real, enforceable privacy protections on both sides of the Atlantic.