Legal risk manager Assignment Example | Topics and Well Written Essays - 2000 words - 1

Legal risk manager - Assignment Example Failure to manage any foreseeable legal risk has the potential to affect all sectors of an organization, and this becomes the concern of every shareholder, employee, and business stakeholders in the business. It is plausible that legal risk management is crucial to any organization since it can effectively remove any uncertainties in relation to business operation of the organization, thus avoiding legal liability later in the future. An effective legal risk management initiative should ensure that the company can avoid any costs that may arise due to any form of legal negligence during its operations. The law that governs obligations in corporate information security in the United States has expanded very rapidly. The latest legal requirement, introduced mainly by laws that were introduced over the last few years, is an obligation to disclose any form of security breaches that involve sensitive personal information to the individuals who are likely to be adversely affected by such kind of breaches. The emergence of these rules that impose a duty to make disclosures for such security breaches has been necessitated by a series of security breaches that started way back in 2005. Following the enactment of these statutes, more than 300 hundred companies, federal agencies, and educational institutions have made disclosures of breaches of sensitive personal information security (Stevens, 2012). These breaches have affected a cumulative total of more one hundred and fifty million individual records. The core response to these breaches has been a regulatory and legislative fury, at both federal and state level. As such, the Congress, as well as many other states, has introduced laws that require organizations to notify individuals affected security breaches that involve their sensitive personal information. Indeed, the federal banking regulatory agencies have issued their final inter-agency guidance for banking