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. 61% of the businesses surveyed by Chubb and Accenture 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 minimizing 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 document is advisory in nature and is offered as a resource to be used together with your professional insurance advisors in maintaining a loss prevention program. It is an overview only, and is not intended as a substitute for consultation with your insurance broker, or for legal, engineering or other professional advice.
Chubb is the marketing name used to refer to subsidiaries of Chubb Limited providing insurance and related services. For a list of these subsidiaries, please visit our website at www.chubb.com. Insurance provided by ACE American Insurance Company and its U.S. based Chubb underwriting company affiliates. All products may not be available in all states. This communication contains product summaries only. Coverage is subject to the language of the policies as actually issued. Surplus lines insurance sold only through licensed surplus lines producers. Chubb, 202 Hall's Mill Road, Whitehouse Station, NJ 08889-1600.