Overhauling the Legal Infrastructure The Importance of Information Survivability Principles

1
Overhauling the Legal InfrastructureThe
Importance of Information Survivability Principles

• Mitchell S. Baxter, Esq.
• LegalNet Works Incorporated
• October 25, 2000

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Argument

• Confusion within legal and regulatory circles.
• Must first re-define cornerstone philosophy.
• Without Information Survivability framework and
  processes, legal experts lack structures to
  overhaul legal infrastructure.

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Four CompetingPhilosophies

• Rely on Consequence Management FEMA
• Remove the Threat Defense/Law Enforcement
• Consumer protection FCC and FTC
• Critical Infrastructure Protection Risk-based
• Understand new risks
• Assess, calculate, and bind risk
• Manage that risk with technology, partnerships,
  law

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Electronic Funds Transfer LawOnline Browser
Environment

• ATM Cards What is the existing law?
• Federal Reserve regulators Draft Regulation E
• Consumer Uses card, but has damage capped
• Banking Insurance Industries Support with
• How will Online Banking Change Arrangement?
• Browser environment Password based
• Aggregation of account details on browser
• Drag to transfer between accounts

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Consumer Protection ApproachNot scalable under
the law

• Current Law protects consumers
• Fifty Dollar Limit 500 per day
• Consumer Notifies bank
• Bank and insurance industry eat losses
• Risk can be quantified
• Law protects certain classes of people
• Cannot work in online environment
• Real-time, no 500 maximum, B2B impacts, etc.

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Information SurvivabilityProgram

• Online fund transfer How to structure
  initiatives?
• RD Focused initiative to support online banking
• Understand, calculate, and bind risk
• Examine Infrastructure interdependencies and
  criticality
• Develop more sophisticated risk assessment
  modeling
• Develop more robust/redundant financial service
  systems
• Partnership
• Financial Services, RD USG/DARPA, Insurance,
  technology industries, other relevant communities

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Information SurvivabilityLegal Changes

• Insurance legislation
• Provide Federal re-insurance to support
  commercial gaps
• E.g., Define National cyber emergency (as trigger
  event)
• Address state impediments for insurance
  proliferation
• Liability
• Address irresponsible online-consumer behavior
• Foster Financial institution security standards
• Consider Director/Officer liability regimes for
  online banking
• National Structures
• Restore services
• Involve financial services industry/vendors in
  structures (e.g., NCC)

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Contact Information

• Mitchell S. Baxter, Esq.
• Senior Vice-President
• Critical Infrastructure Programs
• LegalNet Works Incorporated
• 3204 Juniper Lane
• Falls Church, Virginia 22044
• 703/536-8767
• mbaxter_at_leglnet.com