Cyber security: Overview, definition and example
What is cyber security?
Cyber security refers to the practice of protecting digital systems, networks, and data from cyber threats, such as hacking, malware, phishing attacks, and data breaches. It involves implementing security measures, including encryption, firewalls, access controls, and threat monitoring, to safeguard sensitive information and maintain the integrity of IT systems.
For example, a financial institution may use multi-factor authentication (MFA) and encryption to protect customer transactions from cybercriminals attempting to steal sensitive financial data.
Why is cyber security important?
Cyber security is important because it helps prevent unauthorized access, data theft, and operational disruptions that could result in financial losses, reputational damage, and legal consequences. With businesses increasingly relying on digital infrastructure, cyber security is critical for protecting confidential information, maintaining customer trust, and ensuring regulatory compliance.
For businesses, a strong cyber security framework reduces the risk of cyberattacks and minimizes downtime caused by security incidents. Many industries are subject to strict data protection regulations, such as the General Data Protection Regulation (GDPR) and California Consumer Privacy Act (CCPA), requiring businesses to implement robust security measures.
Understanding cyber security through an example
Imagine an e-commerce company stores customer payment details for online purchases. To protect this data, the company implements cyber security measures such as secure sockets layer (SSL) encryption, firewalls, and regular security audits. These measures help prevent cybercriminals from stealing sensitive customer information.
In another example, a healthcare provider handles electronic patient records. To comply with data protection regulations, the provider enforces strict access controls, requiring employees to use unique login credentials and multi-factor authentication. This ensures that only authorized personnel can access sensitive medical data.
An example of a cyber security clause
Here’s how a cyber security clause might appear in a contract:
“The Parties shall implement and maintain appropriate cyber security measures to protect confidential data from unauthorized access, cyber threats, and breaches. Each Party shall comply with applicable data protection laws and industry standards to ensure the security and integrity of digital assets.”
Conclusion
Cyber security is a crucial aspect of modern business operations, protecting sensitive data, preventing cyber threats, and ensuring regulatory compliance. For organizations, investing in cyber security helps safeguard their digital assets, build customer trust, and reduce legal and financial risks. Including clear cyber security requirements in contracts and policies strengthens overall security measures and promotes responsible data handling.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.