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2005 Copyright

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2005 Copyright

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In the 17th century, London's importance as a trade centre led to an increasing demand for ship and cargo insurance. Edward Lloyd's coffee house became recognized as the place for obtaining marine insurance and this is where the Lloyd’s that we know today began.

From those beginnings in a coffee house in 1688, Lloyd’s has been a pioneer in insurance and has grown over 325 years to become the world’s leading market for specialist insurance.

Top Five Risks

1 High taxation

2 Loss of customers/cancelled orders

3 Cyber risk

4 Price of material inputs

5= Excessively strict regulation

5= Changing legislation

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Other Fears• 13 Reputational risk

• 14 Corporate liability

• 19 Theft of assets or intellectual property

• 23 Supply chain failure

• 28 Industrial/workplace accident

• 29 Pollution and environmental liability

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Other Fears

• 41= Riots and civil commotion

• 41= Flooding

• 44 terrorism

• 45 Windstorm

• 48 Earthquake

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2005 Copyright

What’s The Big Deal?

• Would you be surprised to know that 80 percent of businesses that experience a data breech do not recover?

• Responding to a data breach is not only costly (an estimated $200,000 avg.) it’s complex.

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Is That All?

• Experts from multiple disciplines; forensics investigators, legal counsel and public relations firms, may be needed to coordinate a response to even the smallest incident. In some instances the cost of a forensics investigator alone can reach up to $340,000

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What Else?

• The Health Insurance Personal Privacy Act

• The Federal Information Security Management Act

• Veterans Affairs Information Security Act

• The Health Insurance Portability and Accountability Act

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What Else?• Clinical Health Act

• Gramm-Leach-Bliley Act

• Federal Trade Commission Act

• Fair Credit Reporting Act

• Payment Card Industry Data Security Standard (PCI DSS)

• Securities and Exchange Commission Regulations

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Anything Else?

• Watershed: Target

• Recent: Home Depot

• Personal: Hawk Agency, Inc

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SOLUTIONS

Cyber Hawk

“Night Hawk”

“Broad Winged Hawk”

“Cyber Hawk”

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Illinois Law• Effective Jan 1, 2014

• Poorly Written

• Develop Through Case Law

• Conflicts with Federal Law

• Enforcement Problems04/19/23

Employer Practices Liability

• “Good Faith Effort” to Determine Impairment

• Wrongful Termination

• EPL Response

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Employee Handbook• Anti-drug Policy Statement

• Drug Possession Policy

• Operating Under the Influence

• Prescription Drug Use

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Illinois Law• Effective Jan 1, 2014

• Last State in U.S.

• Most Restrictive in U.S.

• Will Evolve Through Legal Challenge

• Enforcement Problems04/19/23

Employee Handbook

• “Gun Free Zone”

• Parking Lot?

• 23 Places

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Employee Handbook

• Anti-firearm Policy Statement

• Firearm Possession

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Emerging or Evolving Risk

• Heat Stroke

• Ebola

• Vaping

• Kidnap & Ransom

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Out of Pocket

• Premiums

• Deductibles

• Fines & Penalties

• Risk Manager/Department

• Measure/Monitor

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“Soft” Costs

• Organizational Focus

• Reputation

• Employee Morale

• Uncertainty

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Old Paradigms

• “Who’s Your Buddy?”

• It Isn’t What You Know…

• Price is the Only Consideration

• “Generalists” are OK

• Mediocrity is OK

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New Reality

• This is the Information Age

• Everything is Moving at Lightspeed

• New Risks are Emerging/Evolving Daily

• No One Can Know Everything

• Success is a TEAM of professionals

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2005 Copyright

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…IN A RISK MANAGER

• Relationship Management (100+ yrs)

• Product / Price / Markets (50 yrs)

• Diagnose / Provide Solutions (25 yrs)

• Valued Added Services (15 yrs)

• Emerging / Evolving Risk (Today + )

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Recap(one more time)

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• Risk Identification

• Cyber Liability

• Medical Marijuana

• Concealed Carry

• Others (Heat Stroke; Ebola; Vaping; K&R)

• Total Cost of Risk

• What Smart CEOs Know 2005 Copyright

CASH IS KING?

NO,

KNOWLEDGE IS

KING!04/19/23

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2005 Copyright