Risk managers paying greater attention to cyberthreats

April 26, 2013

Risk managers paying greater attention to cyberthreats

Nonprofits need to maximize their budgets and can't afford to let a data breach drain available capital at the organization. A recent survey conducted by global professional services company Towers Watson revealed companies are paying more attention to risk management and increasingly guarding against a number of cyberthreats.

Risk managers protect organizations
The research showed 39 percent of respondents have made investments in network security/privacy liability policies, an 11 percent increase from last year. With decision-makers at nonprofits showing they are trying to protect the company and limit risks, the potential of a data breach and cyberattack may not be as devastating as originally believed.

"Our survey results show a mounting awareness of cyberattack capabilities, which require a more comprehensive protective net than reliance on even the most capable IT staff," said Larry Racioppo, vice president of the executive liability group at Towers Watson. "Yet, six in 10 companies are still without a liability policy in place, and this is alarming. The financial and reputational costs companies face could be enormous if they don't develop comprehensive risk strategies to thwart cyberattacks."

Data breaches are almost inevitable
Risk managers at nonprofits are making a smart choice when purchasing 
network security and privacy liability policies because cybercriminals are becoming smarter, making it more likely for them to find a way into an organization's virtual infrastructure. In fact, recent data compiled by Lieberman Software showed more than 70 percent of IT security professionals are not very confident in their organization's ability to prevent a potential data breach.

 "While vendors of conventional security products – like firewalls and anti-virus – are constantly updating their tools to reactively protect against the latest threats, hackers are looking for flaws and engineering new attacks to exploit them," said Philip Lieberman, president and CEO of Lieberman Software.

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