Risk & Business

What in the world is Social Engineering Fraud?  If you own a business you need to be aware of this potential risk. So let me explain. Social Engineering Fraud is a type of fraud where fraudsters target their victims with fake domain names and make money request, usually through email and with the application of some sort of social pressure. Business employees take the bait and the next thing you know, money is being stolen from the business. This type of fraud is becoming more and more frequent. Business owners are more at risk because they may have unaware employees who think they are working with a vendor or customer and click the link in the email, which is usually the method of delivery for carrying out the fraud. So what is a business to do? First take a risk management approach and educate your employees on how these schemes work and what to watch out for. If it doesn't seem right, don't click !  The next thing to do is to buy some insurance. The best way to accomplish th

Most business owners have not heard of the concept of "Total Cost of Risk". Knowing this metric, however, can be vital to the success of any business. So let me explain this a little and maybe, you  will be able to use it in your business.  Every business has risk. These risks are unique and some are more common.  A business owner can buy insurance policies to cover most of these risks. The insurance industry is full of products and policies that protect businesses. The cost of the insurance you buy is the first cost to be added as part of the Total Cost of Risk.  The next cost would be the claims you have to pay out of pocket because, there was no insurance, or you had to pay a deductible, or you did not turn it in for a claim. These are called self funded losses and they are added to the Total Cost of Risk. Nowadays , every business has some sort of loss control or safety programs to reduce risks in the business. The cost to have these programs in place, and the administrat

From time to time I have discussed in this blog the issues with the flood insurance program run through the NFIP.  Those issues are at the forefront as Congress gets ready to reauthorize the program in the new budget. There are committees meeting as we speak trying to determine how much of the program can go into the private insurance market. The reason for this is to offset the losses the program has each and every year. Also there is talk about updating and improving the risk management profile of the program. In other words, many properties that are more exposed than others will need to comply with some risk management directives in order to participate in the flood program. Looking at the rates and the flood maps, which have been recently updated, is also on the table. Charging the appropriate rate for the exposure is paramount in fixing the continual losing of money and subsidizing of the costs. As the reauthorization approaches, getting it right is paramount for the long term vi