SINGAPORE, May 8, 2012 /PRNewswire-Asia/ -- Concerns about rising cyber crime, new data protection regulation and the rapid adoption of new technologies are causing companies across Asia to re-examine their risk management strategies, according to a new report published today by Marsh.
According to Marsh's Cyber Risk in Asia: Is Your Data Safe? report, recent high profile incidents in Asia, particularly in the online gaming and financial services industries, have increased awareness of cyber risk in company boardrooms. This, in turn, is driving demand for better risk mitigation strategies and insurance solutions. The report identifies companies in the financial services, healthcare, education and communications sectors as most at risk, given the large amount of personal data they collect and store.
"With almost every organisation now highly dependent on connected online systems, the increased sophistication of damaging cyber attacks by malicious individuals or groups poses new and complex risk management challenges," said Stella Tse, Asia Leader of Marsh's Financial and Professional Risks Practice. "In addition, governments in Asia are reacting to this new reality by introducing laws and regulations that hold companies legally and financially liable for data breaches.
"Whether a data breach occurs from a sophisticated cyber attack or a low-tech mistake of simply misplacing a USB stick, the legal and financial liability is the same. Company directors need to examine, identify and manage their risk exposures adequately," added Ms Tse.
To help companies manage this risk, insurers are introducing cyber-specific insurance policies that offer protection for the high costs associated with responding to a cyber or data breach. These costs can potentially include legal expenses, data administrative fines and penalties, settlements, judgments, regulatory investigations, forensic investigation expenses, loss of business income, cyber-extortion and other related business expenses. Some policies also cover public relations professional costs to repair reputation.
About Marsh
Marsh, a global leader in insurance broking and risk management, teams with its clients to define, design, and deliver innovative industry-specific solutions that help them protect their future and thrive. It has approximately 25,000 colleagues who collaborate to provide advice and transactional capabilities to clients in over 100 countries. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies (NYSE: MMC), a global team of professional services companies offering clients advice and solutions in the areas of risk, strategy and human capital. With 52,000 employees worldwide and annual revenue exceeding $10 billion, Marsh & McLennan Companies is also the parent company of Guy Carpenter, a global leader in providing risk and reinsurance intermediary services; Mercer, a global leader in human resource consulting and related services; and Oliver Wyman, a global leader in management consulting. Follow Marsh on Twitter @Marsh_Inc.