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The risks posed by these new threats
Loss of Confidential Information
The unauthorised release of confidential information can present
huge problems for businesses ranging from a loss of competitive
advantage to a loss of reputation or brand damage or even to court
actions. Industrial espionage is increasing generally. The most
common example occurs when employees move jobs and involve
themselves in taking material (including trade secrets and customer
database) from their current employer to their new employer.
Intellectual Property Rights Infringement
The vast majority of content accessed by employees, whether it is
held locally or on the internet, is subject to some form of
intellectual property or copyright law. The employer should guard against
the unauthorised transfer of such content to and from their
networks, as they lay themselves open to a significant risk of
prosecution by a third party laying claim to the copyright.
Corruption of Data and Systems
While most organisations have taken steps to protect themselves from
the number one method of virus propagation – email and internet
downloads – many are still susceptible to malicious code being
introduced directly through a PC on the network from a device used
on an unsecured home computer.
Vicarious liability
Put simply, vicarious liability means that an employer can be held
responsible for negligent acts by its employees – regardless of
whether their actions were specifically authorized by the employer.
This means that, in addition to data loss or threat introduction,
employers face a significant risk if their networks are used to
transfer inappropriate content.
Breach of Privacy / Data Protection laws
With increasingly strict data protection laws now in place, lack of
control over what information leaves and enters the network can lead
to investigation by industry watchdogs, and even prosecution for
company directors.
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