Executives ranking cyber risk higher says new report
A new report shows an increased awareness of cyber risk among chief executives and others in the c-suite. The fourth annual Information Security and Cyber Liability Risk Management report from Zurich and Advisen reveals that while awareness and an acknowledgement of the seriousness of cyber threats is higher there is often an issue about how to tackle it. “The nature of cyber security is evolving so quickly it can be difficult for businesses to keep track of the risks let alone the solutions,” said Erica Davis, vice president of underwriting, Zurich’s Specialty E&O. The poll shows that while 80 per cent of respondents have cyber security as a specific focus of their risk management strategy, only 62 per cent were certain that they had a breach plan in place; down 10 per cent on last year. Among the emerging cyber risks cloud services, employee’s own devices and social media usage all rank highly.
Political unrest tops poll of European risk managers’ concerns
It’s not surprising given the proximity to recent unrest in Ukraine and current conflict in the Middle East that European risk managers cite political risk as their number one concern. That’s according to a survey by the Federation of European Risk Management Associations. The Risk Management Benchmark Survey polled 850 risk professionals in 21 countries and found that other concerns include compliance with regulations, reputation and the economy also among the top ten. Strangely cyber risk is not a top ten concern although that may change when the European Union toughens rules on data breaches to include mandatory reporting. For businesses that have European partners in their supply chain it would appear prudent to ensure that they consider the importance of good cyber security.
Will the US continue terrorism insurance?
As the deadline approaches for the expiry of the US terrorism insurance program advocates are ramping up their calls for its reauthorization. With the country’s administration approaching mid-term elections and in the ‘lame duck’ period a former defense secretary says they should give the go ahead to the program’s renewal now. Robert Gates told an insurance industry event in Arizona that it would be a mistake not to renew the Terrorism Risk Insurance program as the risk is out there and will be with us for a long time to come. The insurance industry could face colossal costs in the event of a terrorist attack on US soil but the renewed act would mitigate these costs.
