Last month, the World Health Organization (WHO) issued a warning about the potentially dangerous, rapidly spreading coronavirus that originated in Wuhan City, Hubei Province of China. According to the WHO the public must be “alert but not anxious”. Information is changing by the hour as doctors and officials evaluate how dangerous this outbreak is, and race against the clock to stop it. For those of you who would like the latest information from the WHO, you can visit their website and view the daily Situation Reports.
I’m sure everyone remembers the day the lights went out for 34 minutes during the Ravens/49ers Super Bowl in 2012. Other than Ray Lewis having some choice words about the outage being more than a coincidence, the effects were minimal. What would have happened if they did not go back on?
Civil unrest in nations formerly viewed as politically stable, such as Sweden and Brazil, is forcing global organizations to consider Political Risk insurance coverage. A recent paper by nationally recognized insurer called the need for Political Risk coverage a “top emerging concern” for global companies. This coverage is meant to help mitigate political exposures that are, normally, excluded from standard property policies to cover the risk to a company’s physical and financial assets. Some of the perils this policy will insure against are Terrorism, Riots, Deprivation or Confiscation of Assets, Strikes, Civil Commotion, Exchange Transfer Risk, Rebellion, and Insurrection. It is very difficult to model, price and determine the appetite for this coverage in the existing insurance marketplace. One thing that is important to note is that coverage is not guaranteed for the reason that rating basis in each country is based entirely on the underwriter’s evaluation of the risks in countries. Coverage is available in both the public market, through OPIC and Miga, as well as the private insurance market.
Think about how many times in the past year you have entered private information onto a website’s “secure” system; your name, credit card information, date of birth, social security number, billing address, mailing address, and/or security questions and answers and that’s how many times you were exposed to identity theft. Each bit of information you provide online can be used by hackers to steal your identity. A cyber security breach is one of the most dangerous and harmful risks for any company regardless of the size or industry. As highlighted throughout our Cyber Risk blog series, it is nearly impossible to be 100% protected from cyber criminals. While having the appropriate insurance coverage is critical, there are other ways to mitigate this risk. It is just as vital for company leadership to take a strategic view of the risks resulting from a data breach (e.g. reputational, supply chain, etc.)
Topics: Breach of Security, Cyber Risk, Cyber Security, Enterprise Risk Management, ERM, Reputational Risk, Risk Management Blog, Social Media Risk, Strategic Risk Management, Total Cost of Risk, Total Cost of Risk (TCoR), Travel Risk
The world economy is becoming even more global and with that, exposure to risks posed to employees traveling abroad continues to grow; thus it becomes ever more apparent that any company should take a more 3-dimensional approach to risk. This means that as your employees travel abroad in order to bring in more business, Senior Management must also consider how they [employees] are protected.
There is no doubt business is going global. With more workers traveling abroad and spending extended times in foreign locations the risks for both traveler and company increase. In addition, travel abroad exposes staff to potentially serious financial risk from personal illness (i.e. sickness not related to a WC injury) and, in certain countries, kidnap and ransom, terrorism and war risks. Many of these exposures are not adequately covered under your standard Worker’s Compensation (WC) and Benefit policies. Prudence dictates the time to address these issues is before the traveler has left on their trip and not when the phone rings at 3:00 in the morning.
Businesses today face many challenges managing their risk; one area of increasing concern is the risks associated with cross-border transactions, which seem to be at an all time high. The procedures and steps organizations face when conducting business internationally are continually becoming more complex. An article by Country Risk Solutions, Managing Political Risk in the New Normal, shows how the rules of engagement for conducting international business have changed.