Even before COVID-19 put businesses under extreme pressure to evolve and embrace digital technology, technological innovation was already more of a necessity than a choice.
With nearly every type of business embracing digital channels and platforms, companies are collecting more data than ever before. The question is, do they have the experience or technological capabilities to manage it in the right way?
Data is everywhere, and data management has one of the highest adoption rates amongst new technologies. Of the businesses surveyed by Chubb and Accenture, 61% are already collecting and using big data; 70% are using some form of cloud service for storage; and over 21% are introducing artificial intelligence (AI) to process and interpret their data.
At its core, business data management is all about minimising the chances of the wrong information getting into the wrong hands, or being used in the wrong way. Businesses have a responsibility to make sure this happens. If they don’t, they can find themselves facing the consequences of violating the data privacy laws that protect their customers.
Data breaches happen in all sorts of different ways, including employee error, poor data management processes, and equipment failure. The best way to avoid these exposures is by taking the adoption of new technologies seriously, rather than seeing them as a ‘quick fix’ to keep up with the competition.
As a first step in any business’ transition to data-centric operations, an investment in the processes and platforms that provide a critical first line of defense is essential. On the technology side, this should include an appropriate regulation-compliant customer relationship management (CRM) system, as well as a backup system in the event of data loss. When paired with customer data training for employees, these foundations can reduce the chances of a data breach and make it easier to bounce back if one does occur.
With these safeguards in place, and a thorough understanding of the regulations around data use, the chances of data mismanagement can be significantly reduced.
In recent months, the threats to data management have increased and a business that is going digital may be more vulnerable than ever. With more employees working from home, it’s harder to maintain strong cybersecurity practices and guarantee secure access to sensitive information. As a result, PwC reports that “cyber attacks have increased along with the rapid worldwide spread of the COVID-19 pandemic,” making it more important than ever to stay vigilant1.
Even with the best intentions and comprehensive protective measures in place, accidents and cyber attacks do happen. In these scenarios, comprehensive insurance coverage can be the lifeline that helps a business absorb the negative effects and bounce back into action.
By pairing the necessary protective measures with responsible data use best practices, businesses can make sure that they’re ready to evolve, without unnecessary risk.
1 PwC: How to protect your companies from rising cyber attacks and fraud amid the COVID-19 outbreak. Retrieved from How to protect your companies from rising cyber attacks and fraud amid the COVID-19 outbreak
This content is brought to you by Chubb Insurance Australia Limited (“Chubb”) as a convenience to readers and is not intended to constitute advice (professional or otherwise) or recommendations upon which a reader may rely. Any references to insurance cover are general in nature only and may not suit your particular circumstances. Chubb does not take into account your personal objectives, financial situation or needs and any insurance cover referred to is subject to the terms, conditions and exclusions set out in the relevant policy wording. Please obtain and read carefully the relevant insurance policy before deciding to acquire any insurance product. A policy wording can be obtained at www.chubb.com/au, through your broker or by contacting any of the Chubb offices. Chubb makes no warranty or guarantee about the accuracy, completeness, or adequacy of the content. Readers relying on any content do so at their own risk. It is the responsibility of the reader to evaluate the quality and accuracy of the content. Reference in this content (if any) to any specific commercial product, process, or service, and links from this content to other third party websites, do not constitute or imply an endorsement or recommendation by Chubb and shall not be used for advertising or service/product endorsement purposes. ©2020 Chubb Insurance Australia Limited ABN: 23 001 642 020 AFSL: 239687. Chubb®, its logos, and Chubb.Insured.SM are protected trademarks of Chubb.
Contact a broker today.