Earlier this week the House Small Business Committee published new cyber security and data privacy guidance for small businesses. Those publications can be found at http://smallbusiness.house.gov/resources/committee-publications.htm, and come on the heels of a Committee hearing that highlighted cyber risks facing small businesses.
According to the Committee, nearly 60 percent of small companies go out of business following a data breach, and over 70 percent of all hacks are aimed at businesses with under 100 workers. These statistics should be setting off alarms for small business owners.
The Committee issued three publications: Data Breach Response, Building Security in the Internet of Things, and Protecting Personal Information. When addressing data breach response, the Committee offers guidance from the Federal Trade Commission regarding steps to take in the event of a data incident, and who businesses should contact after discovering a breach.
Although the resources offer some valuable guidance, the Committee recognizes the limitations of such publications and advises affected businesses to consult with legal counsel, who can advise on federal and state laws, and provide guidance with respect to response and remediation procedures. In addition to offering legal guidance, involving counsel can create a privilege for what could otherwise be damning communications.
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