Tuesday, June 25, 2013

Big Banks are Worried about (Potentially) Big Law Firm Information Security Gaps

From Corporate Counsel, here's another in a long line of stories about clients taking a greater interest in specific security practices followed by law firms, including the growing trend of "Bring Your Own Device" (BYOD), which has resulted in the proliferation of iPhones, iPads, cloud storage services (Box, Dropbox, etc) and more: "Outside Counsel Who BYOD Worry Big Banks" --
  • "That’s the anti-Bring Your Own Device message the country’s biggest banks and financial institutions are trying to convey to their law firms, according to the global chief operating officer of Goldman Sachs’s legal department."
  • "'Everyone on Wall Street' uses separate devices for business and personal data, he said. But the law firms they hire as outside counsel haven’t gotten on board, he complained. The firms are apparently worried that they will be at a 'competitive disadvantage'—especially when recruiting talent—if they agree to enforce stricter data-security standards for smartphones, tablets, laptops, and other digital devices."
  • "Panelist Lani Quarmby, associate GC who oversees outside counsel management at Bank of America, said she and her colleagues spend lots of time talking to law firms to see how they’re protecting data. 'Can you imagine if a law firm had a breach' of their clients’ confidential information? 'We wouldn’t work with them again,' she said."
  • "Rose Battaglia, global chief operating officer responsible for Deutsche Bank’s legal and compliance departments, also chimed in. For the first time her team is being asked to perform risk assessments of their law firms. In a world where companies are responsible for the behavior of their vendors, law firms are among the last vendors they’re assessing, she said.
  • "Isaacs [Goldman Sachs] said that companies understand that federal regulators are eager for them to resolve the issue. He has a sense that if companies don’t, the regulators will step in and impose a solution for them."

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