Almost 60% of Chief Risk Officers and senior risk managers view network risk as a significant and growing threat to their organizations. Network risk and the threats of data and systems crime are also seen as a significant threat to business reputations, which could seriously undermine public confidence in a company’s brand and products. These are the findings of the latest quarterly Corporate Business Barometer, conducted by the Economist Intelligence Unit and sponsored by ACE European Group.
The latest global survey of 230 senior risk managers found that network risk and regulatory risk achieved top ranking in terms of threats facing business today. In addition, almost 50% of respondents cited reputational risk as a significant threat to their organisations.
Shaun Cooper, ACE’s senior network risk underwriter, commented;
“These results are not surprising given the increasing importance of data storage and transfer in today’s global economy. The results merely confirm ACE’s own experience within the IT risk sector that relatively few companies out there have so far taken action to cover themselves in the event of network failure or the loss of data, not to mention the consequential reputational damage”.
“Equally disturbing is risk managers lack of understanding the ‘tech speak’ used within the IT community. ACE calls upon both parties to work in partnership to better understand the issues they face and to work together to mitigate greater exposures. ACE sees the current lack of dialogue and joint recognition of the threats as a key emerging risk in today’s risk environment.”
“ACE’s Dataguard product is one of very few products currently in the market which offers comprehensive protection against financial loss arising from malicious or accidental incidents to computer networks and telecommunication systems. In addition, ACE also offer protection in the form of expert consultancy in the event of reputational damage arising from network risk. The Economist Intelligence Unit findings should act as a wake up call to business to take the threats of network risk more seriously and to take action to mitigate the risk.”
Dataguard
ACE’s Dataguard product has been specifically designed for companies who have a dependency on their computer network. It bridges the gaps in cover with traditional policies and provides leading edge protection to take away the resulting first party financial loss, loss of network revenue, data reconstruction and company image re-establishment costs. For further information on Dataguard, contact Shaun Cooper on +44 (0) 20 7173 7338.
About the research
Trends and coping strategies in regulatory risk is part of research programme on global risk issues by the Economist Intelligence Unit. The programme is sponsored by ACE, Cisco Systems, Deutsche Bank, KPMG and IBM.
The findings in this press release are based on a survey of 230 senior executives. Forty-four percent of the participants were based in the US, 32% were based in Europe, and 15% were based in Asia Pacific.
Thirty nine percent of the companies participating in the survey were from the financial services sector. Respondents from 17 other industries participated in the survey, including professional services, energy sector companies, and IT and technology firms, and pharmaceutical and healthcare companies.