With so much of your confidential information now managed digitally, a small business has a lot to lose if its employees were to steal its secrets. The rise of digital has seen the physical barrier of theft removed, meaning many employees can steal priceless information from your business with just the click of a mouse, perhaps unwittingly.
According to the Oxford Dictionary, intellectual property (IP) is defined as intangible property that is the result of creativity. Therefore your business' intellectual property can include a range of confidential information with commercial value making it a valuable asset to your business alongside client lists and financial information.
So how can you reduce the risk of intellectual theft? There are several key areas you need to think about when protecting your business from intellectual theft:
There is computer software on the market which can track and prevent certain files and information being sent inside and outside your network. Perhaps investigate increasing your security with data leak prevention, database activity monitoring, network flow analysis or encryption software. The cost to purchase and install this software could far outweigh the cost to your business if an employee walks with valuable information. This type of software also provides a beneficial source of evidence should the worst occur.
If the addition of security software isn't viable for your business, and even if it is, you should keep a close watch on access rights for your employees. Certain employees do not need access to your business' financial information, business plans or even stock levels. Change access rights according to the role of your employees and whether they need to use particular information. Check the access rights every three to six months to make sure it is still appropriate. If you have employees leaving, changing roles or taking on more responsibility, access rights will need to be adjusted in line with the changes and you will want to ensure you were on top of it to limit any risk.
On a personnel level, there are a couple of paths you take to minimise the risk of intellectual theft. Firstly, be thorough with your employment processes and be sure to read between the lines when checking references. If you're not careful it is easy to let someone slip through when you should have seen the signs. Secondly, use good management practices to help your staff members bond with the business and care about how it is doing and its path for the future. The simplest way to achieve this is to bond with your employees - connect with them and show you care. A connection between the business and the employee will make it more emotionally difficult to steal from the business.
Make sure your staff members know what is expected of them and what you determine to be confidential information. It may seem perfectly obvious to you but could also seem perfectly harmless to your employee. An employment contract should include a confidentiality clause and you should also make a confidentiality policy easily available to all staff. Such documents should include; what is and is not, defined as confidential information; specific definitions relating to your business and the employees responsibilities; a clause referring to information which is not available at the time of the contract and; consequences should the agreement be broken. Be exceptionally clear on these terms to remove room for any misunderstandings.
Despite all your best efforts, sometimes there is little you can do to protect your business from a persistent, or perhaps just completely careless, employee. So it has happened to you, what now?
If the staff member is still employed by your business, take disciplinary action in line with your confidentiality clause. It will be a personal decision as to what this will include but it may result in dismissal of the employee. Alternatively, you can take the matter to the courts to prevent improper use of confidential information in the future or to recover the monetary value of the loss. This is not a step to take lightly so make sure it is worth pursuing legally.
Top of page