So-called “cyber security” is, for understandable reasons, a big deal in the 21st century.
Our world these days is increasingly complex and interconnected, with technological innovation coming at breathtaking speed and across a truly global dimension.
As individuals and companies in the United States and across the world rely more each day on computer-driven exchanges via email, company websites, online payment mechanisms, social media platforms and a countless array of other possibilities, privacy-related issues and related concerns loom ever larger.
Put another way: Have you been hacked lately?
That query applies with equal relevance to both people in their capacity as individuals simply going about their daily business and to companies contracting with other commercial enterprises.
Today’s post takes a specific look at that latter entity, especially businesses that routinely purchase goods and services and thus ink contracts with suppliers.
If that defines your business, here’s a question: Do your contracts contain clauses and protections regarding risks and duties relating to cyber-security breaches committed by the companies you contract with, such as vendors?
As noted in a recent media article on that subject, they likely should in many instances, especially if you need to provide sensitive information to another party (for example, customer information, credit-card data, confidential records and so forth) to accomplish contract goals.
What if that party breaches and you find yourself in a public-relations snafu, a litigation quagmire or other harrowing position resulting from the exposure, hacking and adverse use of important confidential information?
As the above overview on cyber-security issues stresses, it is important for a business involved in supplier/vendor contracts to focus closely upon security leaks and contracting strategies that address them and mitigate company risk in the event of a breach.
An experienced business law attorney can provide guidance regarding this growing commercial concern and help ensure that a company’s contracts adequately address risks and minimize fallout in the event of a contractual breach.
Call Cook & Price, PLC today at 480-407-4440 or email us through this website.