Breaches cause an immense headache for businesses, not to mention the financial toll they can take due to damage control and loss of business. The government has tried to help prevent such breaches through laws and regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and PCI Data Security Standard. They provide guidelines for how to handle, store, and protect sensitive information. Lately, cyber security risk has become an important factor for plan sponsors.
Recently we discussed how ERISA litigation is expanding to include a broader variety of claims, putting plan sponsors at greater risk. To combat this risk, plan sponsors need to step up and be more strategic about lowering their lawsuit liability.
Plan sponsors know that there are more liabilities and regulations to worry about than ever before. There are constant concerns about IRS rules, fiduciary responsibilities, and tax law changes. Failure to comply with regulations can be an expensive disaster, with the ever-looming threat of losing your plan’s qualified status.