The explosion of internet use, apps, electronic data storage and e-marketing is producing a corresponding rise in cyber crime. This has caused an emergence of new risks which didn’t exist twenty or even ten years ago, including:
- Direct losses from data hacking or security breaches;
- Business interruption - being off-line for extended periods;
- Fines for privacy breaches;
- Civil actions; and
- Reputational damage and repair.
Two cases in recent years have highlighted the large scale of these risks and sounded alarm bells in scores of boardrooms:
- In 2010 Sony had a database of 24 million customers stolen. This included passwords, bank account details and credit card numbers.
- More recently, ANZ Bank’s e-trade website was forced to shut down after it was hacked, resulting in significant lost income.
Although these are large organisations with significant risk protection strategies in place, increasingly there are examples of small to medium sized organisations becoming the target of hackers.
While a first response has been a strengthening of computer security there is growing realisation that few systems are 100 % secure against creative hackers. The scale of potential losses means specialised insurance cover is also required.
Let’s consider for a moment the impact upon your sporting organisation should someone decide to illegally access your member database or web site.
Now try to answer the following questions to the best of your knowledge:
- Do you have sufficient preventative measures in place?
- What are your preventative measures?
- Are you adequately prepared for this risk should it occur anyway?
If you are unable to clearly and definitively answer any one or more of the questions above, your organisation may be at risk and should possibly take immediate action.
As the broker of choice for many sporting organisations throughout Victoria and Australia, we can help to mitigate your risks and minimise what can be a significant financial impact on your business should the unexpected happen.
If you would like to know more or discuss this further, please contact Brad Edwards, Senior Account Executive at Arthur J. Gallagher (proud partner of Vicsport) brad.edwards@ajg.com.au or 03 9412 2431.
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