Effective Strategies for Preventing and Managing Corporate Espionage in 5 Steps

There has been a steady increase in the volume of incidents involving corporate espionage, especially matters in which an insider is the bad actor. In an era when such risks are escalating, protection of sensitive corporate information has become paramount.

Here are five key strategies companies should implement to prevent and mitigate corporate espionage.

1. Insist on Nondisclosure AgreementsNondisclosure agreements (NDAs) are fundamental in the protection of sensitive information. They are particularly crucial when sharing access to proprietary technology, data, or documents. The absence of an NDA can expose a company to significant risks, including unauthorized disclosure and misuse of confidential information.
2. Know and Control Your Trade SecretsIt seems axiomatic that any company intends to protect its trade secrets should be able to succinctly identify them. Yet the identification process can be challenging because technological development is fluid. Companies may conclude that the time and money it takes to determine exactly what trade secrets they own is better spent elsewhere, including on product development itself.
3. Perform Due DiligenceDue diligence is a critical process that companies should undertake before sharing sensitive information with business partners, vendors, potential investors, employees, and contractors.
4. Train Your Employees and Independent ContractorsEmployees — and sometimes independent contractors — often serve as the gatekeepers of a company’s proprietary data. However, they may not always be equipped to identify suspicious activity or know how to respond appropriately. Therefore, companies should invest in comprehensive training programs that educate employees about potential threats and equip them with the skills to respond effectively.
5. Promptly Investigate Suspected ActivityIf a company suspects unauthorized access or misuse of its proprietary information, it should act promptly. This involves engaging appropriate vendors and attorneys to investigate the matter. Time is often critical in these situations, and delays can negatively impact the company’s ability to mitigate damage.

Take a Multifaceted Approach

Preventing and mitigating corporate espionage requires a multifaceted approach. By implementing rigorous legal safeguards, conducting thorough due diligence, using secure communication practices, providing comprehensive employee training, and responding promptly and effectively to suspected activity, companies can significantly enhance their protection against corporate espionage and safeguard their assets.