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2005 Copyright
5/23/2017
2005 Copyright
5/23/2017
In the 17th century, London's importance as a trade
centre led to an increasing demand for ship and
cargo insurance. Edward Lloyd's coffee house
became recognized as the place for obtaining marine
insurance and this is where the Lloyd’s that we know
today began.
From those beginnings in a coffee house in 1688,
Lloyd’s has been a pioneer in insurance and has
grown over 325 years to become the world’s leading
market for specialist insurance.
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Top Five Risks
1 High taxation
2 Loss of customers/cancelled orders
3 Cyber risk
4 Price of material inputs
5= Excessively strict regulation
5= Changing legislation
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Other Fears
• 13 Reputational risk
• 14 Corporate liability
• 19 Theft of assets or intellectual
property
• 23 Supply chain failure
• 28 Industrial/workplace accident
• 29 Pollution and environmental
liability
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Other Fears
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•
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•
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41= Riots and civil commotion
41= Flooding
44 terrorism
45 Windstorm
48 Earthquake
2005 Copyright
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What’s The Big Deal?
• Would you be surprised to know that
80 percent of businesses that
experience a data breech do not
recover?
• Responding to a data breach is not
only costly (an estimated $200,000
avg.) it’s complex.
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Is That All?
• Experts from multiple disciplines;
forensics investigators, legal counsel
and public relations firms, may be
needed to coordinate a response to
even the smallest incident. In some
instances the cost of a forensics
investigator alone can reach up to
$340,000
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What Else?
• The Health Insurance Personal
Privacy Act
• The Federal Information Security
Management Act
• Veterans Affairs Information Security
Act
• The Health Insurance Portability and
Accountability Act
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What Else?
•
•
•
•
•
Clinical Health Act
Gramm-Leach-Bliley Act
Federal Trade Commission Act
Fair Credit Reporting Act
Payment Card Industry Data Security
Standard (PCI DSS)
• Securities and Exchange
Commission Regulations
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Anything Else?
• Watershed: Target
• Recent: Home Depot
• Personal: Hawk Agency, Inc
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SOLUTIONS
Cyber Hawk
“Night Hawk”
“Broad Winged Hawk”
“Cyber Hawk”
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Illinois Law
• Effective Jan 1, 2014
• Poorly Written
• Develop Through Case Law
• Conflicts with Federal Law
• Enforcement Problems
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Employer Practices Liability
• “Good Faith Effort” to Determine
Impairment
• Wrongful Termination
• EPL Response
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Employee Handbook
• Anti-drug Policy Statement
• Drug Possession Policy
• Operating Under the Influence
• Prescription Drug Use
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Illinois Law
• Effective Jan 1, 2014
• Last State in U.S.
• Most Restrictive in U.S.
• Will Evolve Through Legal Challenge
• Enforcement Problems
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Employee Handbook
• “Gun Free Zone”
• Parking Lot?
• 23 Places
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Employee Handbook
• Anti-firearm Policy Statement
• Firearm Possession
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Emerging or Evolving Risk
• Heat Stroke
• Ebola
• Vaping
• Kidnap & Ransom
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Out of Pocket
• Premiums
• Deductibles
• Fines & Penalties
• Risk Manager/Department
• Measure/Monitor
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“Soft” Costs
• Organizational Focus
• Reputation
• Employee Morale
• Uncertainty
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Old Paradigms
• “Who’s Your Buddy?”
• It Isn’t What You Know…
• Price is the Only Consideration
• “Generalists” are OK
• Mediocrity is OK
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New Reality
• This is the Information Age
• Everything is Moving at Lightspeed
• New Risks are Emerging/Evolving Daily
• No One Can Know Everything
• Success is a TEAM of professionals
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…IN A RISK MANAGER
• Relationship Management (100+ yrs)
• Product / Price / Markets (50 yrs)
• Diagnose / Provide Solutions (25 yrs)
• Valued Added Services (15 yrs)
• Emerging / Evolving Risk (Today + )
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Recap
(one more time)
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• Risk Identification
• Cyber Liability
• Medical Marijuana
• Concealed Carry
• Others (Heat Stroke; Ebola; Vaping; K&R)
• Total Cost of Risk
• What Smart CEOs Know
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2005 Copyright
CASH IS KING?
NO,
KNOWLEDGE IS
KING!
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