You will never be immune from technology failure. But our experiences with clients tells us that following these four principles can help you to mitigate the legal risks.
It is a boardroom issue
Legal involvement is central
Risks need monitoring throughout
You're only as strong as your weakest third party
Senior management and the board must devote time to understanding and overseeing technology risk. Not only is this mandated by regulators in some circumstances, it also makes good business sense – because technology risk and business strategy are linked.
Close collaboration between legal teams and the rest of the business is essential to mitigate the risks of technology failure. Privacy experts should also work closely with product teams to ensure that they do not accidentally break data privacy regulations when they develop or update products.
It is imperative to assess technology risk not just when developing new products or forming new partnerships, but also on an ongoing basis. And legal teams should be involved throughout.
Businesses that take every necessary precaution to mitigate technology risk may still be vulnerable if their suppliers, partners or acquired businesses have not done the same. So you should assess the mitigation steps taken by third parties.