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Firms face increased risks to computer networks

Firms face increased risks to computer networks

by Rick Turoczy on March 14, 2005

Flom addresses corporate-information security, a hot topic now as government regulations and a litigious public push companies to prove their networks are secure.

Even smaller companies could be asked to comply if they work for governments or larger companies in fields ranging from health care to banking.

Some consultants say the new emphasis on information security stems from the Sarbanes-Oxley Act passed in the wake of scandals at Enron Corp. and WorldCom Inc. In addition, the Health Insurance Portability and Accountability Act and the Gramm-Leach- Bliley Act put the security onus on health care and banking companies.

But Sarbanes-Oxley doesn’t actually mandate information security, said Ira Solomon, head of the accounting program at the University of Illinois at Champaign-Urbana.

Still, Solomon said, companies are being held to a greater level of accountability for privacy and data integrity. “Companies are collecting more and more data, so there’s more and more at risk,” he said.

Firms face increased risks to computer networks

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