DATA BREACH
Protecting Your Business In The Event Of A Data Breach
Traditionally , when you purchased insurance coverage , you were focused on ensuring the protection of your material possessions , like your automobile , home , office building , shop , farm , farm buildings , and business vehicles . Purchasing insurance meant managing your risks and ensuring you wouldn ’ t be left with nothing in the event of a loss . Why run the risk of having your achievements unprotected in a time of crisis ? But now that most business professionals have adopted digital technology as a way of managing daily tasks , a gap has begun to form in our insurance protection as we leave the digital space we inhabit open to security breaches and vulnerable to attacks .
When the computer was widely introduced into the business world in the 1980s , it came with the promise of making business processes more efficient with the introduction of digital data storage . Businesses progressed from the bulk storage of client files occupying physical space to a safe , accessible , yet invisible storage space which minimized the labour-intensive work of physically managing files .
But with every step forward in digitizing business processes , a new set of invisible vulnerabilities has taken form . Data security is becoming a top issue as hackers have carved out their place in the digital world . They wreak havoc on both business and personal data by gaining access to sensitive , confidential information and releasing it into an untrustworthy environment . Now , in a world of fake news and alternative facts , file systems and data stored on a digital network are vulnerable to a breach .
A recent study found that one in three cyberattacks on businesses in 2016 resulted in an actual security breach . That number equated to three effective attacks per month . This study also found that it could take months to detect sophisticated breaches . It noted that most Canadian companies do not have effective technology in place to monitor for cyberattacks , and they are focused on risks and outcomes that have not kept pace with the threat .
In other words , cyberattacks are increasing their relevance and are now a serious threat to businesses , both big and small . Approximately 31 percent of reported breaches involved companies with fewer than one hundred employees 1 . It also means many Canadian businesses are not adopting diligent practices , like purchasing insurance , to ensure their safety in the event of a security breach . Alternately , hackers are not the only digital peril as the most common breaches occur as a result of human error : lost or stolen laptops and storage devices , accidental mailing or emailing to the wrong individual , improper document or office equipment disposal , unintended posting or sharing of sensitive data , or carelessness by thirdparty vendors .
When it comes to cyberattacks , many people have adopted an optimism bias mindset where they believe “ It won ’ t happen to me .” We ’ re here to tell you that , unfortunately , it could . The biggest known data breach in history , and the most widely publicised incident so far , has been the hacking of more than one billion Yahoo email accounts in 2013 , and then in 2014 of 500 million more .
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