January 14, 2011 by Canadian Underwriter
Risk managers need to better understand how digital risks might affect their organizations and what they can do to mitigate them, according to a Lloyd’s 360 Risk Insight report.
“Digital risks,” in this context, refers to the effects of natural disasters on communications systems, the actions of criminals to steal online banking information, the penetration of a nation’s computing infrastructure (cyber warfare) or online terrorist activity.
Possible threats include operational risks, financial losses, copyright infringements, regulatory fines for breach of duty, or reputational risk to the company brand.
The report elaborates on five recommendations for risk managers: