effective data backup strategy. Companies should weigh the costs of having a couple copies of the data in more than one media format with foreseeable costs associated with falling victim to a ransomware attack. Maintaining effective backups can soften the effects of a ransomware attack, make the response more manageable, and curb the temptation a business might have to pay the ransom and retrieve its encrypted data.

5. INVEST IN INFORMATION SECURITY. The increase of data breaches worldwide coincides with a time where companies increasingly rely more on data and accordingly have more to lose. The costs of a data breach likely outweigh the costs of maintaining a reasonable information security program, equipped with up-to-date technology and proper personnel resources. Regardless of the size of the distillery, businesses should appropriately budget to protect the information within their

care. To get started, consider performing a cybersecurity assessment to identify THE COSTS gaps in the company’s information OF A DATA security based on the threat BREACH LIKELY landscape applicable to the OUTWEIGH THE business, then prioritize limited resources to close COSTS OF MAINTAINING those gaps. A REASONABLE Although these tips INFORMATION SECURITY cannot stop a breach from occurring, a distiller PROGRAM, EQUIPPED mindful of data protection WITH UP-TO-DATE obligations and protection TECHNOLOGY AND strategies will be in a stronger position to handle potential PROPER PERSONNEL threats as they arise. RESOURCES.

Marc E. Sorini is a partner in the law firm of McDermott Will & Emery LLP, based in the Firm’s Washington, D.C. office. He leads the Firm’s Alcohol Regulatory & Distribution Group, where he concentrates his practice on regulatory and litigation issues faced by supplier-tier industry members. His practice for craft distillers includes distribution agreements, distribution counseling and litigation, product formulation, labeling, promotional compliance, compliance strategy, and federal and state tax and trade practice enforcement defense.  Lynette R. Arce is a senior associate in the law firm of McDermott Will & Emery LLP, based in the Firm’s Chicago office. She is a member of the Firm’s Global Privacy and Cybersecurity group, where she concentrates her practice on incident response, cybersecurity preparedness, risk management and regulatory compliance, as well as international and domestic privacy matters.

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