Information technologists are involved in a cutting-edge phenomenon which is more than a profession. They are new age ground breakers developing a business tool which is expanding daily and is attracting criminals because the information they work with is more valuable than gold and diamonds to thieves as well as competitors, says Ryan van de Coolwijk, Hollard Insurance cyber product manager and specialist, within the Hollard Specialist Liabilities, Centre of Excellence.
This means that in addition to doing an effective job with IT itself, information technologists also have the added responsibility of helping their colleagues, involved in other business areas, to be aware of the security issues surrounding information and cyber crime.
The use of technology in the financial services industry is escalating and intensifying and there is no end in sight to this new business administration path we are on. It brings with it a set of new age crime challenges due to the temptingly high value of information on the open market.
So while information technology is a highly powerful and competitive tool, on the flip side it also exposes businesses - as well as individuals - to increasingly complicated and evolving cyber and data related risks. Cyber criminals are making it their business to keep pace with the development of this emerging power. Those of us who are driving that evolvement into new territories need to be equally aware of protection issues and take steps to raise this awareness in those around us.
It has become more important than ever before to ask your thoroughly experienced business colleagues the following questions which they have probably never had to answer before:
* How reliant is your company on your IT systems and data?
* Could you continue operations if these were suddenly taken away?
* How would your clients or business partners respond if the data they entrusted to you was compromised or published online?
* How valuable is your intellectual capital to competitors?
* How many evolving ways can your information be accessed and breached?
* How important do you think it is to have an immediate plan in place as a response to a breach should one become apparent?
* How much attention, planning and care should be devoted to all elements of security?
* How aware are your members of staff to the risks, and do they leave your company unnecessarily exposed? Employees are one of the key security weaknesses at a company.
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Evaluate the risks
A privacy or network security breach could lead to significant damages and financial liabilities. These need to be assessed and evaluated by objective and experienced protection and insurance professionals. These can include:
* The cost of investigation of the breach, incident containment costs and legal fees.
* The variety of specific liability claims, increased cost of working, regulatory penalties.
* Business interruption, crisis management and remediation costs.
* In addition, the loss of client and investor confidence, coupled with the subsequent loss of business, must never be underestimated.
It is important to make sure that these costs are adequately insured. There is nothing simplistic about assessing and arranging financial protection against cyber criminals as Hollard Insurance has found in this specialist category of insurance. As the two years running recipient of the FIA #1 Business Insurer of the Year, voted by broker members of the Financial Intermediaries Association, Hollard has specialists in all categories of insurance, including cybercrime and all specialist liabilities.
The vast volume of data we work with as information technology professionals leaves us with a target painted on our keyboards. The bulls-eye is business information as well as personally identifiable data which can be used to steal identities and launch fraudulent financial attacks of many different kinds including extortion, stealing and duplicating intellectual capital, use sensitive information for advantage as well as cause reputational damage to the victim of the crime.
There is a treasure trove that needs to be safeguarded and I look forward to discussing these with you all at the Security and Finance Forum on November 1.
If you have any emergency questions regarding the insurance assessment and protection of your cyber risk feel free to e-mail RyanV@hollard.co.za.
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