Inside the Breach - CLO Edition
Writing statements, assessing materiality, and meeting disclosure obligations under pressure
Now that I have addressed the Medicare disclosure, let’s return to the Inside the Breach series. Today, we examine the Chief Legal Officer’s (CLO) role during a cybersecurity breach.
Outside of the CISO, no executive may have a more immediate and impactful role during a breach than the Chief Legal Officer.
On the Clock from the Start
If a cybersecurity breach is disruptive enough, the outside world will notice quickly. From the moment the news breaks, the CLO must work with PR to craft a statement that acknowledges the disruption, updates stakeholders on the progress of restoring services, and reassures investors.
In the early hours or days of the breach, details are often unclear, and rumors of worst-case scenarios may already be spreading. Even so, a statement still needs to be written based on the facts you have at hand.
Navigating Legal Obligations
As more details come in, the CLO moves quickly into action. Reviewing client contracts to determine breach notification requirements, meeting with company leadership to assess the materiality of the breach, and, if the company is publicly traded, preparing to file an 8-K disclosure with the SEC all become priorities.
These steps require both speed and precision because mistakes at this stage can erode trust and increase legal risk.
Closing the Loop
Once the investigation is complete and all facts are known, it is time to draft the final notifications. The 8-K filing becomes part of the public record, explaining the breach and its impact. In addition, every affected client must be formally notified, often within strict regulatory deadlines.
Why the CLO Matters
The CLO plays a critical role throughout the breach. Writing accurate statements that stand up to both legal and technical scrutiny is a challenge that cannot be underestimated.
This is why I offer a consulting service specifically designed for general counsels and law firms, helping them respond to breaches with confidence and clarity.