IRMI Update—Issue #117

An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
July 27, 2005

In This Issue

Message from the Editor

Colleague,

According to Deloitte Touche Tohmatsu's 2005 Global Security Survey, internal attacks on information technology systems are surpassing external attacks at the world's largest financial institutions. While the survey focuses on financial institutions, I suspect this is also true for other types of companies. Thus, risk management and IT professionals should perhaps refocus from external threats to employee threats.

Some of the other conclusions of the report are:

  • Organizations need to be prepared for the changing nature of existing and previously unheard of threats, whether they be "pharming" (domain spoofing), the theft of "data at rest," natural disasters, political risks, or counterfeiting.
  • The role of identity and vulnerability management in the compliance world is increasing.
  • Training and awareness are crucial, yet underutilized, contributors to employee vigilance surrounding an organization's security function.
  • A security program needs to be driven by the requirements of the business and then continually monitored, measured, and adapted to the business's changing operating environment.

The recent high profile disappearances of customer or employee data from several large organizations really drives these points home. All organizations—large or small—face these exposures and must address them.

Is this something you worry about? What steps has your company taken to guard against internal attacks against your systems? Please submit your comments.

Have a great day.

Jack

Jack P. Gibson, CPCU, CRIS, ARM
President
IRMI

Nominate a Risk/Safety Manager for Horizon Award

We are now accepting nominations for the annual Gary E. Bird Horizon Award, to be bestowed at the 25th IRMI Construction Risk Conference. This award was created to promote the awareness of innovative risk management techniques and processes. The four previous awards went to representatives from Mo-Kan Construction Industry Substance Abuse Fund, Hoffman Corporation, Southern Industrial Contractors, and Rifenburg Construction.

If you are proud of the accomplishments of your risk manager or safety manager, please submit your and your nominee's contact information.

Risk Tip

Balancing Legal Liability Risks (from an Educational Perspective)—The risks associated with primary education are well documented in existing literature and new risks will be identified in the future. It is well known that the risk associated with activities on-site (playground equipment & sport teams) and off-site (local and international fieldtrips) cause many risk managers to bite there nails and consider not allowing these activities.

The biggest identifiable risk that needs to be balanced against the existing activities is not the legal liability risk but the potential that a large portion of the population, one hundred thousand Kindergarten to Grade 12 students in my situation, will complete their primary education without an opportunity to be physically fit or to leave home for many varied experiences.

Students that are restricted from participating in on-site activities will not have a healthy mind and body, as per numerous studies on the positive effects of physical activity, since many of these children only have access to these activities through school since many families struggle with low income, single-parent time traps, neglect in the home, and other variables. Restricting off-site activities causes the student to miss out on the interaction with other students from different cultures, which often share many of the same core values that we cherish. Ignorance of other cultures may lead to disgust, disrespect, distrust, and fear of other cultures. Developing friends and contacts in other locals will help the student in the development of friendships, future business partners, political allies, tolerance, and understanding for those people that we perceive to be different from ourselves.

By restricting students to a narrow physical and geographical education our society risks developing tomorrow's leaders into unhealthy individuals who will be more focused on the small picture in an emerging global economy. In effect, we are encouraging the decline of Western civilization by developing unhealthy students to look inward for solutions to complex global problems.

Restricting on-site and off-site activities will help the bottom line of today's organization but will hinder the development of our children, which will cause greater risks for the future.

By Darius A. Delon, CCIB, FCIP, CRM
Manager, Risk Analysis and Insurance
Calgary Board of Education
Calgary, Alberta, Canada

Suggest a Risk Tip. Send us a practical tip (less than 300 words) for identifying and managing risks, buying insurance, managing claims, or filling gaps in insurance coverages. Submit your tips. We'll acknowledge your contribution as we did for Darius.

New Expert Commentary

There are now 687 risk management and insurance articles on IRMI.com. Below you'll find summaries of some recent additions with links to the articles.

Register Now for Construction Risk Conference and Save!

Registration is now open for the 25th IRMI Construction Risk Conference this November 7–10 in Las Vegas at the MGM Grand Hotel. Come join more than 1,300 contractors, brokers, underwriters, claims professionals, company executives, and attorneys at the premier forum for sharing ideas and techniques to improve the ways we manage and insure construction risks. Reserve your preferred workshops and hotel room now. Be an "early-bird" and register online today—it's easy, plus you'll save $125!

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