TECHLAW AUSTRALIA. Update on cyber security and data protection. Thursday, 22 June Thursday, 22 June
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1 TECHLAW AUSTRALIA Update on cyber security and data protection Thursday, 22 June Thursday, 22 June
2 Overview Current threat environment why now? What is required/expected? Scenarios: Response? Thursday, 22 June
3 Current Threat Environment - Strategic Importance Diverse and evolving legal and regulatory landscape Exponential growth of information Growing protection challenge Corporate requirements and privacy collide Data and information breaches/disputes - High cost of mistakes Thursday, 22 June
4 Not all actors are equal Motivation Nation State DAMAGE POTENTIAL Fraudster Hacker Anarchist Criminal Organisation Political Movement Hostile Non-State or Quasi-State Actor Business Organisation Ideology/ Self-interest Profit/ Financial advantage Command/ coercion Prankster Ego ICT SKILLSETS REQUIRED / AVAILABLE POOL Individual Loose aggregation Structured organisation Tuesday, 13 June
5 Some specific statistics from Australia Australian Cyber Security Centre Threat Report 2016 Public Sector (18 months to 30 June 2016) : 1095 serious attacks Australian Bureau of Statistics DDOS attack Private Sector (18 months to 30 June 2016) : CERT (responding to major incident) responded to 14,804 attacks, 418 of which related to critical infrastructure or systems of national interest Thursday, 22 June
6 Mandatory Data Breach Notification Privacy Amendment (Notifiable Data Breaches) Act 2016 Due to commence 22 February 2018 (or earlier) Notification obligations apply if: the entity becomes aware that there are reasonable grounds to believe that there has been an eligible data breach; or the Information Commissioner so directs the entity. 'Eligible data breach': unauthorised access to, or unauthorised disclosure of, or loss of personal, credit reporting or credit eligibility information or TFN; a reasonable person would conclude that the access or disclosure would be likely to result in serious harm to an individual to whom the information relates. Obligation to assess 'suspected' data breaches And then there is the actual notification itself Thursday, 22 June
7 ASIC guidance and requirements Report "Cyber resilience: Health check" published in March 2015 ASIC noted that corporates must consider how and when a cyber attack may need to be disclosed as market-sensitive information in accordance with continuous disclosure obligations Directors' obligations to take cyber risks into account when discharging their duties in considering risk management issues We are seeing more active engagement of the board and senior executives in data management issues Thursday, 22 June
8 An integrated view of cyber-risk management? Thursday, 22 June
9 A response timeline Who is on the Incident Response Team (internal / external)? [Tested] Incident Response Plan in place Proactive penetration testing / vulnerability assessments Implement Incident Response Plan, e.g. mobilise IRT segmented, secure communications in place maximise availability of legal professional privilege cyber insurance notification? NB Future actions may be informed by insurance arrangements / requirements Thursday, 22 June
10 A response timeline cont. Contain the breach / preliminary assessment Retain data, preserve evidence Forensic analysis and initial assessment 5 24 HOURS INVESTIGATION AND RESPONSE ACTIONS Steps to contain breach Steps to maximise business resilience / continuity e.g. taking systems down cutover to backup systems/data Thursday, 22 June
11 A response timeline cont. Risk evaluation and communication Critical supplier communications e.g. evidence preservation letters to service/cloud providers Critical customer communications HOURS INVESTIGATION AND RESPONSE ACTIONS Information/Evidence gathering Statements from relevant representatives Develop a PR strategy Internal and External comms/pr releases (if sufficient information known and rectification) Thursday, 22 June
12 A response timeline cont. Notification/Consultation Actions 24 to 48 hours Regulatory: HOURS NOTIFICATION ACTIONS Mandatory notices to regulators/affected individuals required? Australia only? Voluntary consultation e.g. APRA? Industry: e.g. CERT, AFP? Contractual contractual obligations to disclose? POST INCIDENT First party / Third party claims assessment Initial assessment of potential claims available against third parties, e.g. third party supplier contract breach Initial assessment of internal costs/losses Initial assessment of exposure to third parties e.g. customers, regulators Thursday, 22 June
13 A response timeline cont. Post-Incident Implement key learnings Consider the need to: POST INCIDENT Update incident response plan Update members of the ICT Change internal systems, processes, policies Adopt alternative risk positions in customer / supplier arrangements Thursday, 22 June
14 TECHLAW AUSTRALIA Melbourne Thursday, 22 June Thursday, 22 June
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