For an industry that encourages its clients to protect themselves extensively against risks that could lead to damages to their business, results show that not all attorneys practice what they preach, Marsh's 2014 Global Law Firm Cyber Survey reveals.
The concern surrounding cyber threats in the legal profession supports research dating back to 2011 from cyber security firm Mandiant, which stated that 80% of the largest 100 law firms had been hacked. But despite this pressing concern, 72% of respondents acknowledged that their firms have not assessed and scaled the cost of a data breach based on the information. Furthermore, 51% have not taken precautionary measures to insure their cyber risk, or are unaware whether their firms have taken such action. And nearly two-thirds of respondents have not calculated the effective revenue lost or extra expenses incurred in the aftermath of a cyber attack.
Firms have taken some security precautions, but still are vulnerable. Survey results show that 67% of Marsh respondents outsourced to meet their information technology needs, which allows unauthorized personnel access to valuable and confidential information.
Still, most respondents treat their cyber and privacy security with a top-down approach. Information technology teams were most involved in the review and management of overall cyber/privacy risks, followed by the firm's management group, general counsel and risk management team.
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