Cyberattacks are an unfortunate reality of today's business environment. Theft by hacking of confidential consumer information and the legal fallout has been well-reported—some of the higher-profile victims include Target, Home Depot and the notorious Ashley Madison website. In addition to consumer information, a company's trade secrets invariably get caught up in the cyberbandits' web. As a result, businesses should be just as concerned about the compromise of these important business assets by way of cyberattacks.

The key to effectively addressing computer-based theft of confidential trade secrets actually begins prior to the hacking. Almost all businesses have trade secrets, which include things like customer lists and information, formulas and unique business processes. To obtain the legal protections afforded to trade secrets by federal and state law, however, a company must be able to show that the information is in fact confidential and that the business has taken reasonable measures to maintain that secrecy.

The first step to protecting trade secrets is to identify exactly what your trade secrets are. Too many companies take the approach that their trade secrets consist of “everything” or “the way we do business,” without being able to articulate exactly what is unique or proprietary about the information. Companies should conduct a trade secret audit every year seeking input from key management and IT personnel, as well as legal counsel. Once the trade secrets are identified, they should be logged, and the list should be reviewed and updated every year. Only when something is quantified can adequate steps be taken to protect it.