Friday, March 15, 2013

Legal and Financial Impact


We often associate the unauthorized release of confidential company information with actions from hackers and undercover agents from competitors, but the truth is that a large percentage of the unauthorized release of information is related to Internet misuse in the workplace. Even though most companies have strict Internet usage policies their employees frequently disregard these policies. According to a study from Websense Inc. “employees are using the Web more and more for personal reasons and that is setting U.S. companies back $178 billion annually, a cost of $5,000 per employee.”

(http://www.brcontrol.com.br/ENG/images/browser-logo-major.jpg)

An example of how Internet misuse in the workplace has the ability to affect a company both legally and financially is the case of an employee from a medical facility using the Internet to post a comment on a social media website regarding a patient. Even if the employee and the patient are related and the employee did not have any negative intentions the unauthorized release of medical information represents a Health Insurance Portability and Accountability Act (HIPAA) violation. HIPAA violations represent high financial and legal costs to the health industry.


HIPPA compliance program advertisement

(http://abouthipaa.com/wp-content/uploads/dothemath-bootcamp.jpeg)


Even though some companies cannot restrict their employees’ access to the Internet because of the nature of their business, the companies have the chance to establish solid ethics and compliance policies and training. Effective ethics and compliance programs lower the legal and financial impact of a data breach on a company because the companies that use them the have the ability to prove that they took reasonable measures to prevent the data breaches.


Websites of interest





1 comment:

  1. I feel as if the major companies are fighting a up hill battle. It is quite difficult to keep employees or anyone for that matter away from the Internet. If there is no Internet in the nature of the business we still have mobile devices. Employees are always sneaky and get on social media with their phone. Companies must place strict rules and regulations, even then employees will find ways.


    -hector hernandez

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