IT Security Loss Exposures

By Staff Writer

September 01, 2002 at 08:00 PM

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Property destruction

Theft, loss, alteration, or dissemination of customer or other proprietary information

Defacing of Web pages or interference with customer or other relationships

Fraud losses from improper electronic signatures, unauthorized access, improper credit authorization

Interference in IT systems, such as denial-of-service attacks

Patent infringement, copyright, and other liability exposures from e-business operations

Financial damages from third parties relying on the financial institutions IT systems

Unauthorized alteration of software code

Unauthorized downloading and duplication of software programs

Potential Security Exposure Results

Uninsured expenses to replace lost physical assets

Loss of income from disrupted operations

Extra expenses to run substitute operations, such as restoring destroyed information, running backup facilities, settling lawsuits, or paying regulatory fines

Loss of customer and distributor good will

Bad publicity that damages the firms image

Lowered credit and solvency ratings

Insolvency in large loss situations where there are inadequate risk management controls

Source: LOMA

Reproduced from National Underwriter Life & Health/Financial Services Edition, September 2, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

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