Dateline: 09/12/2002
SCHAUMBURG, IL, December 9, 2002 -- While it is widely known that poor digital security can have a severe impact on a business’ operations, most companies will continue to focus on quick technological fixes like installing an improved firewall. This myopia will lead to increased e-risk exposure, according to a year-end forecast by Zurich North America’s Financial Enterprises business unit, a leader in e-commerce risk management services and insurance coverage.
Annette Merz, president of Zurich North America Financial Enterprises, said, "Our concern is twofold -- first, that companies are underestimating the complexity of digital security, which goes well beyond securing the perimeters of their operating environment, and second, that in light of current economic conditions, they are cutting back on investments in critical measures designed to protect their assets from digital assault."
According to Merz, companies need an integrated digital security strategy that addresses the following basic points for protecting against cyber crime:
- What you don’t know will hurt you. Risk reduction is the name of the game, but companies need to first be aware of the nature and origins of their e-risk exposures. Once these areas of vulnerability are mapped out, they can focus on developing a combination of technology-driven, security management and social engineering tools that help secure business infrastructure and applications, provide business continuity planning, and create risk awareness and education on all appropriate levels of an organization.
- Don’t be lulled into a false sense of security. Industry experts agree that there is no silver-bullet technology when it comes to protecting against e-risks. Risk transfer mechanisms must also be a part of the solution, allowing for the transfer of exposures that companies don’t want on their balance sheets to insurance companies willing and able to underwrite and assume these risks.
- Exposures in one area can lead to exposures in other areas. Companies need to deal with their digital exposures before they snowball into even bigger problems, such as management liability exposure, should it be proven that directors and officers failed to do their due diligence in protecting corporate assets.
Zurich North America Financial Enterprises (www.zurichna.com/fe) is a recognized leader in providing innovative risk management solutions to the financial services industry and specialized solutions, such as E-RiskEdge, to a wide variety of industries.
Zurich North America (www.zurichna.com) is a leading commercial property-casualty insurance provider serving the multinational, middle market and small business sectors in the United States and Canada. Headquartered in Schaumburg, Ill., Zurich North America has 11,650 employees and wrote $10.9 billion in premiums in 2001. Zurich North America includes the Zurich U.S. business units (Corporate Customer, Middle Markets, Small Business, Strategic Partnerships, Construction, Specialties, Zurich Global Energy, Surety & Financial Enterprises and Empire Insurance Companies), as well as Universal Underwriters Group and Zurich North America Canada. The Zurich U.S. pool of companies is rated A (excellent) by A.M. Best and A+ (strong) by Standard & Poor's. Zurich North America is a member of the Zurich Financial Services Group.
The Zurich Financial Services Group (www.zurich.com) is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs well over 70,000 people.
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Media contacts:
Linda Rinaldi
410-261-7942
Zurich North America
linda.rinaldi@zurichna.com
Paul Del Colle
Miller DeMartine Group
(203) 221-2790
pdelcolle@mdgpr.com