Delaware Business Insurance Update from CNC Insurance Associates "Traditional Risk Management May Not Be Able To Stop Cyber Crime" 9-9-14

Home Depot just announced a major data breach  of customer records. This follows numerous other breaches over the last year from major stores and retailers. What is not reported are the cyber crimes committed against small business every day. It is becoming an epidemic. If small business is looking at insurance and traditional risk management to be the answer, I think they will come up empty.  Most insurance products today are very limited in coverage and current risk management strategies are also inadequate.  Using the 5 steps of risk management becomes problematic because cyber crime is hard to identify, analyze and control in a traditional risk management way. So what are businesses to do to combat cyber crime?  It is going to take some very creative risk management professionals to come up with new risk techniques. Things that the text books have yet to write about. With emerging risk comes innovation. Lets hope that the innovation comes quickly. Until next time be careful out there and know your risks.
G. Kevin Nemith Pres. CNC Insurance Associates Inc. & The Small Business Insurance Center
Serving DE, MD, NJ, PA, & VA
www.cncinssurance.com
www.bizinsurancetv.org




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