Advance Planning Reduces Companies' Risk of Cyber Catastrophe Comprehensive network security measures, backed by a data breach response plan, replace concern with confidence
KANSAS CITY, Mo., May 9, 2013 /PRNewswire/ -- In a recent survey, the majority of corporate risk managers and senior executives expressed concern about cyber risks. Yet many U.S. companies do not have a network security or privacy liability insurance program to protect themselves. In other words, they feel vulnerable but aren't sure what to do about it. A new report by Lockton illuminates the issue, along with the solution to managing cybersecurity in a world where business often depends on technology.
The report, co-authored by Lockton's Michael Schmitt and Lisa Phillips, is entitled "Cybersecurity: Most Companies Know Enough to Worry, But Not Enough to Take Action."
"How an organization responds to a data breach can either cause or prevent lost customers, regulatory fines and investigations," Schmitt said. Phillips added that preparation and testing are essential for any responsible organization. She writes that it starts with an assessment of the type of data held, including where it is stored, who has access to it and whether there are proper security measures in place to protect it.
After analyzing risk and implementing security measures, the next step is to create and test a data breach response plan with participation from IT, Legal, HR, Risk Management, Finance and Customer Service. Lockton also suggests involving data breach experts outside the company who can provide insight and guidance.
If a breach does occur, the data breach response team must be ready to move quickly to verify, investigate and communicate internally – and with customers, as appropriate. The Lockton experts also recommend speaking with an insurance professional about what may be covered and what breach response services may be available through an insurance policy.
More than 4,450 professionals at Lockton provide 15,000 clients around the world with risk management, insurance, and employee benefits consulting services that improve their businesses. From its founding in 1966 in Kansas City, Missouri, Lockton has attracted entrepreneurial professionals who have driven its growth to become the largest privately held insurance broker in the world and 9th largest overall. Independent researcher Greenwich Associates has awarded Lockton its Service Excellence Award for risk management for large companies. For four consecutive years, Business Insurance has recognized Lockton as a "Best Place to Work in Insurance." To see the latest insights from Lockton's experts, check Lockton Market Update.