The Secure GC: Data Breach Preparedness Through Auditing

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When a data breach occurs, the immediate hours after are both chaotic and critical to an effective response. Preparation is therefore essential. One component of executing an effective breach response is a solid understanding of the contractual contours between contributing or impacted third parties. Scouring a contract management system, or worse, a file cabinet of paper contracts to understand relevant third party relationships and obligations in the heat of a breach could therefore result in the organization spinning its wheels when it should be implementing its data breach response plan. Auditing, extracting key provisions, and organizing those provisions before a breach occurs can therefore be a valuable tool in responding to an incident or full-scale data security crisis. But, how can inside counsel be secure in her belief that she’s cataloged the most relevant provisions to a breach response? Collecting and understanding the following provisions in third party agreements is a good starting point for preparedness when a breach occurs.

First published in InsideCounsel on January 6, 2016

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