We hope you took time during National Cyber Security Awareness Month (October) to think about cyber security. Existing and emerging cyber threats can compromise business networks, devices and data. They can even jeopardize the success and existence of any business. Though 2015 will soon be gone, it looks like cyber threats are here to stay .
Hartford Steam Boiler recently asked business risk managers about their experiences with cyber threats over the past year.
Their Cyber Risk Survey revealed a growing concern about data security, and for good reason. Just look at the responses to the first question, which asked about the number of hacking scares or incidents experienced in the last year.
- None (31%)
- 1-5 (37%)
- 6-10 (10%)
- 11-15 (4%)
- More than 15 (18%)
Nearly 70% had at least one hacking scare or incident in the last year! Here’s how risk managers responded to other survey questions.
What types of information are you most concerned about being breached?
- Personally identifiable information (53%)
- Sensitive corporate information (business plans, products, marketing, etc.) (33%)
- Financial information banking credentials (14%)
Do you feel your company is dedicating enough resources (dollars or personnel) to combat the evolution of hacking techniques?
- No (55%)
- Yes (40%)
- Don’t know (5%)
What do you think is the biggest risk when it comes to cloud technology?
- Loss of confidentiality of information (76%)
- Service interruption (16%)
- Government intrusion (5%)
- Negative impact on employee satisfaction (perception of down time risk) (2%)
- Lack of service standardization (1%)
Which risk management services are you most interested in deploying to combat cyber risk?
- Intrusion detection/penetration testing (32%)
- Employee education programs (25%)
- Encryption (25%)
It’s also significant that 46% of respondents said that in the last year their business purchased a new cyber insurance policy or increased coverage under an existing policy. Unlike traditional commercial insurance policies, Cyber Liability and Security Breach (Cyber Perils) Insurance policies protect against privacy injuries, such as identity theft, and cover the cost of complying with data breach notice laws.
Given the complexity of cyber insurance, an experienced insurance agent should be consulted to ensure adequate coverage is obtained. If you would like to learn more about insuring against cyber risks, contact us.
If you would like to learn more about preventing data security breaches, take our online course Information Risk Management: Strategies for Preventing and Mitigating Information Security Breaches .
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