Legal Liability

Definition: Legal liability may befall a business or individual for negligence or a failure to practice due diligence. Customers have filed suit against companies for the disclosure of their confidential information. Infrastructure owners are increasingly being required to pay out awards and fines for damages caused by security breaches. State and federal governments have recently passed their own laws related to securing information and many of the regulations are accompanied with fines for failing to comply. International requirements and fines for failing to comply are even more stringent.

Its Relevance: Our modern society is litigious. Owners of information systems find their infrastructures increasingly linked with others and at more risk. Infrastructure owners must provide the security measures that a "reasonable and prudent person" use in the same or similar set of circumstances. The concept of suffering financial liability for the actions of malicious users is known as "down stream liability".

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