Protecting Confidential Business Information in a Digital Environment

Introduction

Protecting confidential business information has become increasingly important in the contemporary world. Businesses face a growing threat of cyberattacks, unauthorised access, and data breaches. Protecting such information is a legal requirement. It also helps maintain trust with clients, colleagues, stakeholders, and the community. By implementing proactive and preventative measures, businesses can reduce the risk of a breach and operate more securely. Confidential business information may help distinguish a business in a competitive market. Protecting it from unauthorised access remains a priority.

Understanding Confidential Information and Privacy in Protecting Confidential Business Information

Many people use these terms synonymously, but they refer to two distinct concepts that serve different roles in protecting information.

Privacy gives individuals control over their own information and who can access it. Confidentiality requires others to protect that information. Organisations must not disclose it without authorisation.

Confidential information includes Trade secrets, client information, financial data, employee records, intellectual property, operations. Internal Use – Company policies, project plans, non-sensitive internal communications.

Confidentiality and privacy can be jeopardised inadvertently, depend on trust, and draw their basis from legal and ethical frameworks.

Device Encryption and Protecting Confidential Business Information

In the instance that employees are required to use a device independently or their own personal device, third party applications may be installed. With this, there becomes an increased risk of unauthorized access to sensitive information.

Device encryption secures stored information by converting it into an unreadable format using an encryption algorithm. If someone accesses the data, only individuals with a valid encryption key or password can read it. This measure protects companies that have remote work options for their employees where the use of personal devices and internet connections are prevalent.

Physical Security of files

Law firms increasingly rely on technical software to organise and manage their matters, but they still use physical files.

Some measures to ensure this may include:

• The control of access to physical documents within the workplace This includes safe custody and offsite storage.
• In the case of disposal of documents, anything that includes a client’s details or anything that could compromise should be shredded
• If you are carrying documents in public, making sure that you are covering up any observable information to the best of your ability.
• Avoid discussing matters concerning your business practices in public or in online forums

Confidentiality Agreements and Protecting Confidential Business Information

Employers can enforce non-disclosure agreements (NDAs) or contracts with confidentiality clauses on employees to protect sensitive company information. These contracts help companies safeguard their information even after an employee leaves the business. By defining what is confidential information, outlining the obligations of the employee and the consequences of a potential breach – the agreement sets out clearly to the employee their duties and responsibilities.

Such agreements may include the following clauses that outline:

• The duration period of the agreement (i.e “Confidential information shall remain in effect for a period of [X] years from the date of disclosure..”
• Exclusions as what information is not considered confidential
• The process of returning and destroying information deemed to be confidential
• The specific jurisdiction and legal process to enforce the contract as well as the process of resolving disputes.

Artificial Intelligence extensions

Artificial Intelligence (AI) extensions can enhance user experience. These tools often require access to large amounts of company data. This includes existing and future data uploaded to the software system. By integrating A.I, you may be inadvertently granting access to unwarranted third parties.

In the instance that the extension is in its ‘beta’ stage or else has gaps in its security measures, third parties may exploit these weaknesses. To reduce the risk, ensure the extension uses encryption protocols to protect data in transit and at rest, and allow the user to shut down, update, and delete it at their discretion. Further, in applying strict access controls that authorises only specific personnel to interact with the data.

Disclaimers

Whether your business corresponds internally or with multiple external parties, include a disclaimer that sets out your responsibilities regarding confidential information. For example, if your practice corresponds mostly through email a, disclaimer included within the signature of the email could include that

• ‘Liability is limited by a scheme approved under Professional Standards Legislation’
• The email is for the receipts only
• It may contain information that is privileged and confidential
• If they are not the intended recipient that they must not distribute it or rely on it and to notify the sender, if they are not the intended recipient.
• A request to destroy the email and its attachments

Conclusion

The implications of exposing confidential information can be detrimental to a company’s reputation, security and long-term operation. By implementing various measures as well as considering a wide variety of risks, businesses can ensure their sensitive information stays protected. Ultimately, protection of such information is not merely a legal obligation and duty to client, but measures help nurture resilience to change in an increasingly evolving world of digital development.

Jake McKinley notes that this article is written for the purpose of providing generalised information and not to provide specialised legal advice. If you require qualified legal advice on anything mentioned in this article, our experienced team of solicitors at Jake McKinley are here to help. Please get in touch with us on 02 9232 8033 today to make an enquiry.