A firm is more likely to have an internal data breach versus an external breach. This is counter-intuitive due to the media’s sensationalism of hackers and their conquests but the likelihood of an issue comes from the people that have access to your offices.
Real Scenarios:
An Accounting Firm – The cleaning service accidentally leaves the door unlocked and hard copy tax returns are stolen.
An Asset Manager – A disgruntled employee steals client information with a flash drive before being terminated.
A Doctors Office – A copy machine is returned to the warehouse after the lease was renewed and the old machine was replaced with a new one. The Hard Drive was later stolen from the machine in the warehouse with 2 Gigabytes of patient information.
To quantify the costs of a breach, click on this link for a calculator. If you have over 1,000 files this link can be a help to determine what the cost to your organization could be: Calculator
With only an insurance policy you have not positioned your firm to properly manage these risks. The proper steps should be to complete a risk analysis, followed by a risk reduction plan to set up methods to transfer, mitigate, prevent, finance or assume the risk. New risks are emerging by the day so it is extremely important for firms to proactively position themselves for what could happen next.
For more information and to utilize some of Deland, Gibson’s proprietary risk management services please email Chip Gibson or call him at 781.237.1515.
