Creating a Cyber Security Policy: Legal Requirements for Employers

Cyber security is critical for UK businesses, including those hiring staff. Your company must protect its systems and data from cybersecurity risks and demonstrate compliance with key legal requirements such as the UK GDPR and the NIS Regulations. Cyber threats are increasing, and failing to mitigate risk against them can lead to serious consequences. A clear cyber security policy can help your business reduce the risk of cyber security incidents. This article explains the risks cyber security poses to businesses, the laws surrounding it, and how your employer business can implement steps to help manage these risks.

Why is Cyber Security a Risk for Employers?

As an employer, your business likely holds a range of personal and other sensitive and confidential information, such as customer data, financial records, and employee details. This means you will be an attractive target for cybercriminals. Cyberattacks can result in data loss, disrupt your operations, and cause significant financial losses. If a breach occurs that compromises personal data, regulators such as the ICO can impose penalties under the UK GDPR. 

Many cyber security breaches arise when businesses overlook avoidable risk issues. Weak passwords, unsecured software systems, lack of awareness and poor employee practices can provide easy opportunities for attackers. Your company must prioritise electronic security and take practical steps to secure its systems and data.

Which Laws Are Relevant to Cyber Security in the UK?

Cyber security obligations in the UK come from several laws. 

For example:

• the UK GDPR and Data Protection Act 2018 require businesses to adopt “appropriate technical and organisational measures” to secure personal data. If a breach risks individuals’ rights and meets the reporting threshold, your business must notify the ICO within 72 hours. Although not cybersecurity requirements, its requirements set out key issues which are relevant to cybersecurity, e.g. regarding the protection of information;
• the NIS Regulations 2018 impose strict rules on certain types of operators, focussing on the security of IT systems; and
• the Product Security and Telecommunications Infrastructure Act 2022 sets out duties for businesses that manufacture or distribute smart devices.

If your business operates in specific regulated sectors, additional rules may apply. You must identify the laws that apply to your company and ensure compliance. You should seek legal advice if you need help understanding which cyber security laws apply to your business.

How Can Employers Manage Cyber Risks?

While cyber security is a real threat and worrying, there are various practical steps you can implement to protect yourself.

Human error causes many cyber breaches, so your business must train employees to handle data securely. As an employer, you should train your employees to recognise common threats such as phishing emails, use strong passwords, and follow secure processes when carrying out their roles. You should carefully tailor this training to your business’s specific risks. 

Even with strong defences, incidents can happen. Your business must, therefore, prepare and roll out a clear incident response plan and teach staff how to recognise, contain, report, and recover from attacks quickly. Regularly test the plan to ensure you can respond effectively and reduce disruption.

GDPR Essentials Factsheet

This factsheet sets out how your business can become GDPR compliant.

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How Can a Cyber Security Policy Support Your Business?

A cyber security policy is a best practice document that can help give your business a clear plan for protecting systems and data. It should clearly define organisational responsibilities, set standards, and specify rules for employees to follow. Your business should ensure the policy covers key areas such as data classification, access management, and incident reporting.

You can include key rules to prevent electronic risks, such as creating secure passwords, information security requirements, and how to be attentive to potential attacks.

The policy can also address additional protections, such as personal device use practices and rules preventing system misuse.

If you adopt this policy, your business should regularly review and update it to address changing risks as cyber threats continue to develop over time. 

Key Takeaways

Cybersecurity risk mitigation is vital for UK businesses. Creating an effective cyber security policy is a best practice tool that can help you prevent cyber risks, define responsibilities, set clear standards, and give your employees a clear understanding of cybersecurity risks. By taking a proactive approach and implementing such steps, you will be better positioned to reduce the potential impact of cyber threats.

If you need help with a cyber security policy, our experienced Data, Privacy and IT lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page. 

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