By Matthew Sorenson
When it comes to the information technology (IT) industry, recent advancements in several key areas such as memory, processing speed, bandwidth, and centralized storage have allowed for great strides in computer efficiency. More and more professionals are enjoying the ease and convenience that comes with operating via the cloud. Many companies are becoming heavily reliant on such technologies in order to operate on a global scale.
However, as the saying goes, with every good thing comes a bad thing... and in this case, that thing is Cyber Risk. While the age of computers has provided us with the added tools and resources to be able to more efficiently do things like generate sales, manage our finances, and communicate vital information, it comes with a price. We see this in the news with all of the stories surrounding large-scale security breaches. These breaches have done quite a number on big-box retailers such as Target and Amazon, affecting millions of consumers after much of their personal and financial information was "hacked". You may have even heard the stories floating around involving a Russian criminal gang that may have successfully stolen over 1.2 billion passwords via the internet, which could be the largest security breach in history.
All of this may sound a bit scary; however, there are plenty of things that you can do to protect your online security. As mentioned in a previous post by Naomi Dolin-Aubertin, we can certainly take a proactive approach to this by frequently changing our passwords and utilizing a two-step verification process. Sadly, these measures aren't always enough. At the speed in which technology improves, it can be hard to stay one step ahead of the "crooks".
What many businesses fail to measure is the possible financial repercussions that might result from such an information breach and never develop a contingency plan. Many of these risks were unheard of 10 years ago. The potential liabilities that may arise from some of these newer cyber-exposures can be quite substantial.
Some examples of these new exposures include:
- Liability for privacy and confidentiality violations
- Copyright or trademark defamation
- Malicious Viruses
- Network failure for long periods of time (business interruption)
Luckily, we are not alone in navigating this complex risk environment. Many insurance providers have taken notice and are now providing various risk management and insurance solutions such as risk advising to help businesses avoid such losses. Also, in exchange for a premium payment, a cyber-risk insurance policy can provide financial indemnification should such an event occur, allowing a business to remain on its feet during this difficult time.
While we can do everything in our power to protect our personal information online, sometimes it can be seemingly out of our control.
So ask yourself: Are you prepared?
Leave a comment!