As cyber threats continue to rise, companies face increasing pressure to secure their data. Rather than investing in strong security measures, many decision-makers opt for legal protections. But does this strategy hold up when a real emergency occurs?

We call the practice of merely fulfilling formal compliance requirements in cyber risk management without implementing actual security measures Legal Washing.

Companies are lulled into a false sense of security - both internally and externally. They declare themselves to be legally compliant with regard to data protection requirements, but hardly implement any substantial measures to mitigate cyber risks.

In my opinion, this practice is based on the mistaken belief that legal safeguards prevent data protection incidents. And it is unfortunately widespread. Robust cyber security is ignored - the risk grows exponentially.

Instead of investing in real protective measures, many companies rely on legal opinions, new general terms and conditions or contractual safeguards against cyber risks. But the reality is brutal: hackers don't read terms and conditions, ransomware gangs ignore liability clauses, and a cyber attack can paralyze a company overnight - regardless of what the contracts say. Despite this, many decision-makers avoid taking real security measures.

The real reason for legal washing? It is comfortable.

• An expert opinion costs money once - but a real cyber security architecture requires continuous investment.
• A liability clause is quickly formulated - but a cyber resilience plan is real work.
• A formal "cyber compliance" stamp is easy to get - but real security is an ongoing issue.

Cyber security is supposedly expensive, complicated and inconvenient - so it remains with minimal compliance measures. The mistake? Cyber threats cannot be regulated away.

The Board of Directors and Executive Board bear responsibility

For boards of directors and senior management, the top priority is to secure a sustainable future for the company. With a view to securing this future, cyber security must also be included today. After all, cyber security is considered by many experts to be the greatest challenge of the present and future.

Many management bodies ignore the issue due to excessive demands and/or profit considerations. This can be expensive. Managers are personally liable if they act with gross negligence. Cyber attacks are no longer isolated incidents, but economic and political weapons. In addition, dependence on big tech is growing as cloud providers increasingly dictate prices and service quality. Without their own security strategy, companies are losing control.

Future-proof strategies need to be developed. A combination of technological, organizational and legal measures is needed to ensure the long-term success and security of the company. But how can this be done?

Zero Trust is the new security standard

Zero Trust is a security concept based on the principle "Trust no one, check everything". Unlike conventional security models, which rely on defined perimeters, Zero Trust assumes that threats can come from both outside and inside. Therefore, no access can be considered trustworthy, regardless of whether it comes from the internal network or from outside. Every identity, every device and every access must be continuously checked and authenticated. Authorizations are strictly assigned according to the principle of minimum privileges and are constantly monitored to detect suspicious activities at an early stage. Although the approach also works locally, it is not suitable for the cloud. no alternative.

What can companies do?

It is high time for managers and boards of directors to take action and establish long-term security measures. Legal clauses alone do not offer sufficient security, but instead provide a deceptive risk reduction.

• Strengthen technical measuresIntroduction or expansion of a DLP systems (Data Loss Prevention), consistent Encryption of sensitive data and permanent access controls.
• Ongoing review: Security strategies must be constantly reviewed and adapted to current threats. We support you in developing the right strategies.
• Implement Zero Trust: Introduction of a comprehensive Zero Trust ApproachA formal "cyber compliance" stamp is easy to obtain - but real security is an ongoing issue.
• Awareness and training: Regularly train employees on security risks and data protection and sensitize.

The following rule of thumb applies today: those responsible in companies and administrations must take a long-term perspective. If it is foreseeable that security measures will become less effective in the coming years or will not be able to react flexibly enough to new threats, additional measures should be considered, reviewed and proactively implemented at an early stage.

Conclusion

Legal washing is a dangerous illusion. Those who only rely on formal compliance instead of taking real security measures are exposing their company to considerable risks. Zero Trust is the key to a sustainable security strategy - it is not about trust, but about continuous monitoring. Digital security can only be effectively guaranteed through a combination of technical prevention, organizational resilience and strategic foresight.