THREE CONTRACTOR TAKE-AWAYS FROM THE INTELLIGENCE DATA BREACH

Government contractors were part of the audience watching events unfold last week over the substantial breach in intelligence information.  There are important lessons contractors can learn here, even for those that don’t work in the intelligence community.

1.  Good Systems Are No Match For Human Error:  For all of the billions invested in cybersecurity, “Zero Trust”, and other solutions meant to keep information safe, there is absolutely no way to anticipate human error.  Systems only work if people use them properly and it’s easy to let your guard down when you’re comfortable among colleagues.  Contractors should understand that this applies to themselves as well as to their government customers and take steps to enforce existing security protocols before looking at new ones.  Enforcement is not easy and can be time-consuming, which is why many don’t follow through.  That’s exactly what’s needed now, though.  A little prevention, even if tedious, is far better than an “intelligence cleanup in aisle three.”

2.  Contractor Breaches Will Suffer More Consequences:  While penalties for security and intelligence breaches can be substantial for government people, contractors need to remember that the consequences of any problems caused by their action or lack thereof can be far greater.  It’s not only civil and potential criminal penalties, though those can certainly be severe.  Contractors also have to weigh the “court of public opinion” factor in any incidents they cause.  Company reputations, stock prices, and the ability to obtain future business can all be impacted.  Contractors remain on the lowest rung of the government ladder and need to plan accordingly.

3.  Expect A New Wave of Rules:  Leaks of classified intelligence information almost always lead to new procedures and rules in an attempt to ensure that “this never happens again.”  Contractor actions will likely be covered by any new procedures.  This could add to company overhead and slow the pace of business if more steps are needed to get from start to finish on a government project.  Contractors will want to pay close attention to the regulatory aftermath of this latest incident

All companies doing business with the government need to be aware that what happens in one part of government can, indeed, impact their own business, even if it is not seemingly related.