Negligent Liability & IT Outsourcing

Negligent Entrustment Liability

Negligent entrustment is where personally identifiable information is outsourced to an insecure back-office operation (Rustad, 2007). Organizations have an affirmative duty to ensure that data is secure regardless of whether it is in-house or outsourced, or where it gets outsourced to. The liability centers on the companies who have direct liability to consumers and businesses, not just the outsource operation.

has international standards for the protection of intellectual property. U.S. companies have an independent duty of care to ensure third world back-office operation comply with reasonable data security standards. It is a company's duty to do security audits before transmitting sensitive information. Negligent enablement lawsuits come about to hold the handler of information directly liable for facilitating or paving the way for cybercrime by direct negligence. AU.S. organization that does not do security audits on the outsource operations can be held liable...
[ View Full Essay]