Underlying contracts help address third-party data breach risk
- Condominium Group
- Dec 30, 2007
- 1 min read
Underlying contracts help address third-party data breach risk
December 31, 2007
Whether caused by criminals, political hacktivists or human error, data breaches have become a frequent occurrence. New causes of action for breach of privacy have increased the potential for related damage awards, making data breach one of the most significant risks faced by Canadian organizations. An organization may influence its level of data breach risk when contracting for information services. Cloud computing, software-as-a-service and more traditional forms of information technology services involve placing the organization’s data in the hands of a third-party vendor. This data sharing creates an opportunity for the organization to manage its data breach risk through under-lying services agreements.
