Probably less than you think.
Three in four U.S. companies don't have Cyber Risk or Network Security insurance, according to a study by Towers Watson & Co. What's more, many small and midsized businesses that do carry these policies have left themselves vulnerable to costly losses by failing to develop proactive data security and crisis response plans.
A data security plan begins with the human element. Training employees - particularly those who regularly deal with proprietary information in-house or stored on portable electronic devices - offers a cost-effective approach. A study by NetDiligence found that more than one in four liability data breach claims were due to lost equipment and other staff errors.
To help keep confidential information safe, managers should:
If you should suffer a data security breach, you'll need a crisis response plan, with responsibilities assigned ahead of time. The risk management and legal departments will deal with coverage-related issues such as cross-policy response and claims processing, while IT managers and auditors investigate the source and extent of the breach. Planning should also include guidelines for contacting law enforcement, and forensic investigators, as well as communicating with providers and business partners to address continuity issues.
The plan should designate personnel to handle media inquiries and public statements, interact with providers, and notify affected customers, using dedicated and updated contact lists.
We can help you create comprehensive, cost-effective protection for your confidential information by combining insurance coverage with risk management techniques.
According to the most recent Bureau of Labor Statistics job fatality report, deaths due to poor maintenance rose 14%, year to year, in 2011, the highest level since 2006. Accidents from maintenance have a variety of causes: everything from falls caused by working heights, confined spaces or harsh environments associated with accessing equipment, and shocks and burns if power is not properly isolated, to injuries from moving machine parts, musculoskeletal problems caused by working in awkward spaces and exposure to asbestos and dangerous chemicals.
There are three types of maintenance:
To make your maintenance activities safer and more productive, follow these guidelines:
For more information on maintaining your safety maintenance program, just get in touch with us.
Given the dramatic impact of social media on the speed and delivery of news and information, it makes sense to make this fast-growing technology part of your risk management program.
More and more reputational crises — such as the recent stranding of the Carnival Triumph cruise ship — are born on social networking platforms and can grow exponentially if mishandled. Consider how Apple Inc. responded to consumer displeasure with the iPhone 4 shortly after its 2010 introduction. Negative comments about the product spread quickly over social media channels, but were largely ignored by Apple executives until mainstream news outlets began reporting on its flaws.
Failing to actively engage social media users in conversations about crisis or business practice of your company means losing an invaluable opportunity to protect your reputation. Otherwise, you risk having other people tell your story.
Social media participation gives you a way to enhance this reputation through regular interaction with customers, business partners and the public. Using this tool to develop relationships and help people, rather than just sell products and services, can create some valuable allies.
Encouraging your employees to participate in social media offers a great way to use them as advocates for your company. A 2012 poll of more than 1,000 registered voters by Hill+Knowlton Strategies found that a corporation's employees are the second-most trusted source of information about its business practices, second only to friends and family members.
It's always difficult to terminate an employee - especially in this age of employment litigation and privacy concerns. Even if a worker leaves voluntarily, you need to make sure that he or she no longer has access to confidential information
The key to making sure that you've covered all bases of your bases is to follow a Departure Checklist:
The more you think through this process before a problem arises, the more effectively you'll be able to deal with it. We stand ready at any time to help you develop and implement an effective plan that can go a long way to help you protect your business from this risk.