Companies' Data Loss Fear Rises, Survey Says

Businesses executives participating in a global survey expressed a high concern over the threat of data loss, according to a study by an insurer and a research firm.

The latest global risk briefing released from London by the Economist Intelligence Unit and sponsored by ACE European Group found one in three global businesses see loss of data as a significant threat and the key issue to address in operational risk management planning.

Their findings were based on a survey of 181 senior executives and risk professionals.

According to the study, 40 percent of those polled said in terms of operational risk, their organization focused more on loss of data than other issues--including systems failure, human error and even natural disasters.

The study said the results mark a growing risk management trend towards a greater emphasis on the operational impact of data loss.

Gareth Tungatt, an ACE senior underwriter specializing in information technology and cyber risk, said the survey shows "risk managers clearly understand the value of data and, increasingly, are focusing on its associated losses."

Mr. Tungatt added, "I see this report as providing the evidence to show that more businesses are looking ahead in terms of their business continuity planning. Seventy- one percent of those questioned said that they have increased the time and resources they dedicate to focusing on their business continuity programs."

The survey found over half of respondents thought the volume and severity of operational risks have increased in the last three years. But a similar number were confident that their business's operational risk planning would successfully manage areas such as risk assessment and quantification.

When asked about the business impact of poor planning, 43 percent of those responding saw damage to company reputation as the main threat. Only 19 percent said loss of revenue.

Mr. Tungatt said, "The apparent lower level of fear about loss of revenue is a concern. Based on the survey's findings exposure to financial losses is expected to increase so it is clear that businesses should be doing a lot more than they currently are to counter the financial implications of data loss."

"Products such as ACE's Dataguard cover have been developed to provide protection against such losses and risk managers should be considering these to mitigate potential business failure," he added.