Businesses throughout Europe and around the world are facing an ever-growing host of data threats. From more traditional ransomware and phishing attempts, to state-of-the-art, highly coordinated Internet of Things and newly minted generative AI attacks, the scope and sophistication of these threats is continually evolving.
Legal departments can play an effective and key role in keeping businesses abreast of these new threats and as such, surveying Chief Legal Officers (CLOs) offers critical insights into an organization’s preparedness. In addition to the unique skillsets and perspectives they provide within a company, CLOs are increasingly being sought as key contributors to business strategy, as counsel are charged with working collaboratively across departments. This evolution has resulted in an increase in responsibilities for CLOs over the past few years. A majority (58%) of CLOs now oversee three or more additional business functions beyond legal, and 27% oversee five or more, according to the Association of Corporate Counsel’s 2024 Chief Legal Officers Survey.
Given the financial and reputational risk of data and cybersecurity attacks, CLOs can also be a valuable resource when it comes to establishing or strengthening a data security strategy, whether in direct oversight of the data security function or in close collaboration with either Chief Information Security Officers or others within the organization. Although data security has emerged as a critical issue around the world, garnering considerable attention, only 12% of CLOs reported that they are “very confident” about their organization’s ability to satisfactorily respond to cybersecurity incidents or privacy breaches. With almost constant changes to regulations globally, paired with the rapid evolution in technology, corporate legal departments, in coordination with IT, can help stay up-to-date with new developments to help ensure legal compliance and keep the organization as well-protected as possible against emerging data threats.
As organizations navigate these challenging waters, here are ten practical strategies from the CLO’s playbook to enhance leadership and effectiveness when managing corporate data security:
1. Understand laws & regulations
Understanding relevant data protection laws, such as the GDPR or the EU Artificial Intelligence Act, is foundational. CLOs need to stay current with these regulations and ensure that their company’s practices are in full compliance. Regular reviews and consultations with legal and compliance teams can help decode complex legal requirements and align them with the company’s data security strategies.
2. Develop robust data security policies
Creating comprehensive data security policies is essential. This involves close collaboration between Legal, and IT and cybersecurity teams to address areas such as data encryption, access controls, and incident response protocols. Considering that 45% of organizations have no overall data management strategy according to the Association of Corporate Counsel’s 2024 Chief Legal Officer Survey, CLOs have a significant opportunity to lead and make a real impact.
3. Implement employee training & awareness programs
Employee awareness is crucial for data security. CLOs should spearhead the development of training programs in collaboration with chief information technology and security executives to educate staff about best practices, such as recognizing phishing attempts and securely handling sensitive data. This requires coordination with IT teams to ensure the technical details are clearly communicated and understood. Regular training and reinforcement can help foster a culture of security awareness within the organization.
4. Collaborate with IT & security teams
Effective data security requires a collaborative effort. CLOs should establish cross-functional teams that include legal, IT, and cybersecurity staff to develop and implement security strategies. Regular meetings and workshops can enhance communication and ensure that legal and technical aspects are aligned and the Legal team should not hesitate to organize these.
5. Monitor compliance & conduct audits
CLOs need to establish robust processes to monitor compliance with data security policies. Regular audits and assessments can help identify vulnerabilities and areas for improvement. Keeping meticulous records of compliance efforts and incident responses is also crucial for maintaining accountability and transparency, as well as supporting the ability to procure or renew cyber insurance coverage.
6. Actively manage vendors
Managing third-party vendors is a key aspect of data security. CLOs should evaluate the data security practices of vendors through due diligence and include strict security requirements in contracts. Regular reviews and audits of vendor compliance are necessary to ensure they meet the company’s data protection standards. It is also important to make sure that procurement offices apply the right standards to their third-party supply contracts.
7. Conduct incident response planning
Having a well-defined incident response plan is critical. This plan should clearly outline roles, responsibilities, and communication protocols in the event of a data breach. Regularly testing and refining the plan through simulations can help ensure that the organization is prepared to respond effectively to security incidents.
8. Use privacy by design principles
Privacy by design means integrating data protection into the development of products and services from the outset. CLOs should advocate for these principles and work with product development teams to incorporate privacy and security features early in the project lifecycle. This proactive approach helps ensure that privacy and security are built into the fabric of the organization’s offerings.
9. Stay informed about emerging threats
The cybersecurity landscape is constantly evolving. CLOs need to stay informed about new threats and trends by participating in industry groups, attending conferences, and subscribing to threat intelligence feeds. This knowledge can be used to continuously refine and improve the company’s data security strategies.
10. Integrate data security into board reporting & governance
Keeping the board of directors informed about the company’s data security posture is essential. Regular updates on security initiatives, risk assessments, and compliance efforts can help the board understand the importance of data protection. Establishing governance structures focused on cybersecurity will ensure that data security receives the attention and resources it needs at the highest levels of the organization.
By embracing these strategies, CLOs can enhance their leadership in data security, ensuring their organizations are better equipped to tackle the complex challenges of the digital age. For businesses around the globe, empowering a strategy-focused CLO can be a helpful line of defense against cyberthreats that show no sign of stopping.
Author
Veta T. Richardson
Association of Corporate Counsel, Washington D.C.
President & CEO