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Need For Data Protection And Cyber Security In Arbitrations
Need For Data Protection And Cyber Security In Arbitrations
Introduction
The assurance of confidentiality is one of the main reasons why parties choose arbitration over judicial procedures. In contrast to judicial processes, it offers participants a private venue for resolving issues. However, vile attempts by cybercriminals to breach the forum's purity have tarnished the guarantee of confidentiality. The legal profession is especially targeted by this modern threat.
Risks involved
Despite popular belief, cyber hackers frequently target numerous cogs in an international arbitration process. There are several reasons for this:
High-stakes international arbitrations sometimes involve parties that are notable targets of cybersecurity breaches, such as multi-national corporations, governments or state bodies, public figures, and/or non-governmental organizations (NGOs). Furthermore, international arbitration cases frequently necessitate the production of proof of facts that are not readily available in the public domain but have the ability to affect politics and the financial markets. Furthermore, international arbitrations bring together parties from a wide range of jurisdictions and locations. Parties are generally represented by huge and frequently changing groups of people. Lastly, in-house lawyers, counsel, and arbitrators tend to travel extensively and work from multiple places. These factors augment the risk of being hacked by electronic means as well as theft of physical data.
Arbitrators and Arbitral Institutions - Arbitrators make every effort to ensure secure cybersecurity. Arbitrators, on the other hand, may or may not have advanced IT support. Arbitral organizations are extremely vulnerable to cybersecurity threats since they store sensitive information. During a hearing of a contentious maritime boundary dispute in July 2015, the website of the Permanent Court of Arbitration in Hague was hacked. Despite the dangers, many arbitration centers continue to use unsecured storage and communication methods. Furthermore, institutional norms are frequently vague on cybersecurity, allowing parties and the tribunal to communicate and transmit data via any unencrypted electronic medium.
Conclusion
Concerns about data security risks must be handled in creative ways because of the simplicity and efficiency of arbitration. Parties must also contribute to increased security by clearly stating that secrecy protection is needed by the arbitration clause's successful construction. Due to the competitive environment, different arbitral institutions cannot establish a consistent norm due to the prevailing competition in the arbitration business. Because parties frequently choose a general arbitration provision to avoid focusing on potential future conflicts, a standard secrecy protection method is critical. Furthermore, the tribunal's acceptance of different rules would greatly reduce the likelihood of data leaks.
References:
This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, or Religion, Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.
- The assurance of confidentiality is one of the main reasons why parties choose arbitration over judicial procedures.
- Factors augment the risk of being hacked by electronic means as well theft of physical data
- Furthermore, the tribunal's acceptance of different rules would greatly reduce the likelihood of data leaks.
