Daily Market Update - March 2, 2015

What’s the biggest risk to cyber security?... Seven states will lead investigation of Anthem breach… Women business owners more likely to risk personal finances…

Risk Management News

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What’s the biggest risk to cyber security?
What’s the biggest risk to a business’ cyber security? Rogue states? Organized crime syndicates? Competitors? In fact a report by a law firm partner puts a business’ own employees at the top of the risk list. Judy Selby from BakerHostetler LLP told a conference that “employees are at the root of most cyber breaches.” Selby says that it’s not necessarily a deliberate act of sabotage, although that can happen. Often breaches are caused by something as simple as an employee sending an email to the wrong recipient or to a personal email address. She said that this kind of risk should be getting more attention than it does. There is also the issue of how employees handle customer data. Delegates at the TechLegal conference were advised on a number of measures to make cyber security stronger; strengthening passwords, having an email policy including deletion after a set period, and limiting the use of removable storage such as memory sticks. Read the full story.
 
Seven states will lead investigation of Anthem breach
Seven members of the National Association of Insurance Commissioners (NAIC) will lead the multi-state examination of Anthem Insurance Companies, Inc. and its affiliates. The breach exposed the data of millions of the healthcare insurer’s customers to the threat of identity theft. The association’s president Monica Lindeen has pledged to assist those who may have been affected and to work with the industry to strengthen security protocols. NAIC says that once the criminal investigation has run its course the seven lead-state regulators reserve the right to expand the examination, anticipating that a majority of states and territories are likely to sign on in the future.
 
Women business owners more likely to risk personal finances
A survey by credit reference agency Experian has found that female business owners are slightly more likely to have put their personal finances at risk than male counterparts. Women are more likely to have tradelines open on their personal credit files than men (25 per cent against 17.5 per cent). Women also tend to pay bills later (averaging 8.4 days after contracted terms compared with 8.1 days for men) and have a greater tendency to be more than 90 days overdue with payments. Experian flags this as a particular concern due to the higher level of personal credit lines being used. Overall the study found that female business owners suffer from weaker access to commercial credit lines, have lower personal credit scores (around 10 points lower than men on average) and on average have lower incomes than male business owners. Read the full story.
 

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