The security of your organization’s information, whether it be in digital format or on paper, is under greater threat than ever before. To combat this threat, companies are allocating significant resources to fortify their networks to prevent access by hackers.
While such measures are critical, no IT solution will ever be enough. A recent NetDiligence survey found that 30% of cyber losses (52 out of 176) were attributable to employees of the organization – of those, 77% were unintentional, caused primarily by staff mistakes and errors in paper handling.
For publicly traded corporations, cyber security has quickly evolved into a board issue, a risk for which they have a fiduciary duty to understand and manage. For board members, a cyber incident or privacy breach could prompt shareholder lawsuits for security failures, declines in a company’s stock price, and allegations of management negligence. Impacted clients can also bring a class action lawsuit, even where there is “no evidence that a Class Member absorbed a fraudulent charge".
Smaller and mid-sized organizations are not immune to this risk. The majority of claims submitted for the NetDiligence Claims Study (87%) were from organizations with less than $2B in revenue. It is a relatively new trend that hackers will target smaller organizations as they are seen as being more vulnerable. Where such a breach becomes public knowledge, the reputational damage and loss of business could put the viability of a smaller business into jeopardy.
Please read our report to find out what we can do for you. Hard copies of this report are available by request.