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Cyber Security and Your Business: Knowing the Risks

By February 10, 2015June 8th, 2020Insurance

A recent study by the Ponemon Institute out of Michigan has revealed a staggering increase in both cost and frequency of corporate data breaches.

According to the study, corporate data breaches have increased by 43% in the past year, and average costs are up 15% to a disturbing $3.5 million.

With sometimes vast banks of information stored digitally, companies have to be aware of the appropriate security measures to ensure that their data remains protected. Even the smallest intrusion can be catastrophic, yet only 38% of companies have devised a strategy to protect their IT infrastructure. At stake is not only a business’ financial stability, but also brand recognition and reputation. The first step in protecting your business from data breaches and keeping your systems secure is knowing what to look for.

Cyber

Hackers and Intruders

Although some hackers will intrude your systems with benign intentions (i.e. creating a virus that has no negative effect), others will search for valuable information, such as client info, and steal or modify it.

Malicious Code

This code can take the form of worms, viruses, or Trojan horses, all of which are intended to exploit your computer/systems and either relay information back to a remote intruder or cause major damage.

Once you know the risks, it is important to implement guidelines and programs to maintain cyber security. You can do this by creating a formal, documented risk management plan that addresses the scope and responsibilities involved with performing a cyber risk assessment. This plan should include documentation of all systems used at your organization based on function, importance, and data stored.  You should make sure to review this plan annually, updating it whenever there are significant changes to your systems, the facilities in which they are stored, or any other situations that may indicate a risk.

California law mandates that any company must report data breaches and their details to customers. Although it is impossible to see a data breach coming, it is always recommended to plan for a potential breach so that the damage is less costly. Contact Insurance Incorporated today—we have the tools necessary to ensure you have the proper coverage to protect your company against a data breach. For more information or a free quote on Cyber Liability insurance contact our office.

 

 

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