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Top Five Consumer InsurTech Predictions for 2017

It’s that time of year again when we start getting tactical about 2017. Business strategies have been formulated and approved, and now it’s time to focus on execution. As usual, the new year starts with the world’s largest technology conference,

The post Top Five Consumer InsurTech Predictions for 2017 appeared first on insBlogs.

Top Five Consumer InsurTech Predictions for 2017

It’s that time of year again when we start getting tactical about 2017. Business strategies have been formulated and approved, and now it’s time to focus on execution. As usual, the new year starts with the world’s largest technology conference,

The post Top Five Consumer InsurTech Predictions for 2017 appeared first on insBlogs.

Top Five Consumer InsurTech Predictions for 2017

It’s that time of year again when we start getting tactical about 2017. Business strategies have been formulated and approved, and now it’s time to focus on execution. As usual, the new year starts with the world’s largest technology conference,

The post Top Five Consumer InsurTech Predictions for 2017 appeared first on insBlogs.

Blockchain. The next big thing?

Without a crystal ball it’s hard to know whether any technological innovation will live up to the early hype. Such is the case with blockchain technology. While some insurance industry analysts see great promise in this emerging technology, others have

The post Blockchain. The next big thing? appeared first on insBlogs.

Blockchain. The next big thing?

Without a crystal ball it’s hard to know whether any technological innovation will live up to the early hype. Such is the case with blockchain technology. While some insurance industry analysts see great promise in this emerging technology, others have

The post Blockchain. The next big thing? appeared first on insBlogs.

Blockchain. The next big thing?

Without a crystal ball it’s hard to know whether any technological innovation will live up to the early hype. Such is the case with blockchain technology. While some insurance industry analysts see great promise in this emerging technology, others have

The post Blockchain. The next big thing? appeared first on insBlogs.

Blockchain. The next big thing?

Without a crystal ball it’s hard to know whether any technological innovation will live up to the early hype. Such is the case with blockchain technology. While some insurance industry analysts see great promise in this emerging technology, others have

The post Blockchain. The next big thing? appeared first on insBlogs.

Blockchain. The next big thing?

Without a crystal ball it’s hard to know whether any technological innovation will live up to the early hype. Such is the case with blockchain technology. While some insurance industry analysts see great promise in this emerging technology, others have

The post Blockchain. The next big thing? appeared first on insBlogs.

ICLR lays out the next five years of hazard research

ICLR has just released its latest five-year plan, which sets out the Institute’s research and engagement strategy for the period 2017 through 2021. Over the plan period, ICLR will continue to focus on providing research that supports action by public

The post ICLR lays out the next five years of hazard research appeared first on insBlogs.

It’s Time For The Insurance Industry To Be Serious About Optional SABS

This week I was speaking to my insurance agent who preparing my renewals. I was asking her about how the optional benefits have been impacted by the regulatory changes that became effective on June 1st. During the conversation it came out that she only…

The post It’s Time For The Insurance Industry To Be Serious About Optional SABS appeared first on insBlogs.

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		<title>Flexible Risk Assessments and Effective Reporting in the Banking Industry</title>
		<link>https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826</link>
				<comments>https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826#respond</comments>
				<pubDate>Mon, 22 Apr 2019 19:16:23 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Business Risks]]></category>
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				<description><![CDATA[<p>The banking industry is perceived as the most advanced in their understanding and implementation of risk management. Although banks have indeed made huge progress in risk management, two areas all banks can improve is the structure used in conducting their<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826">Flexible Risk Assessments and Effective Reporting in the Banking Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box nonhundred-percent-fullwidth non-hundred-percent-height-scrolling">
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<p><img class="size-medium wp-image-8827 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />The banking industry is perceived as the most advanced in their understanding and implementation of risk management. Although banks have indeed made huge progress in risk management, two areas all banks can improve is the structure used in conducting their assessments to enable actionable and insightful strategic reporting.</p>
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<p>I’ve found that the understanding and implementation of risk management is driven not by industry or size of institution, but rather by its people: boards, executives, their teams and front-line managers keeping their organizations on track to achieve their goals and preventing missteps and scandals in the fast-paced age of the See-Through Economy.</p>
<p>In an effort to give these two groups some insight into how they can accomplish this, I presented at two conferences for risk managers in the financial industry on new best practices and emerging trends. At the <a href="https://www.aba.com/Training/Conferences/Pages/riskmanagement.aspx">American Banking Association’s 2019 Risk Management Conference</a> in Austin, TX, I presented on how attendees could get more out of cross-functional risk assessments. A short day later, I dove into effective board reporting at the <a href="https://landing.rmahq.org/gcorxiii">Risk Management Association’s GCOR XIII Conference</a> in Cambridge, MA.</p>
<p>In this blog, I’ll recap some of the highlights of these two important, intimately related topics. I’ll also pass along the tools I showed to each session’s attendees to give you a head start on implementing these tips for <a href="https://www.logicmanager.com/erm-software/operational-risk-management-software/banks/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">risk management in the banking industry</a>.</p>
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<h3>Goals and Challenges in the Banking Industry</h3>
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<div class="fusion-sep-clear">Attendees of ABA and GCOR alike have similar goals and challenges in the financial industry. So first, what are these goals? Protect your bank by identifying, mitigating, and monitoring risks before they manifest and identify new opportunities and capital efficiency.</div>
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<p>What’s the challenge? Today, there’s a lot to protect your bank from – data breaches, reputational damage, non-compliance, a recession, and so much more. So the challenge, in a word, is complexity.</p>
<p>To paint a small picture of this complexity, think about the main regulatory body your bank has to align with and how many different risk categories they define. What I’ve seen time and time again is banks trying to put together different risk assessments to match up with all these different categories – the FFIEC’s 6 risk categories, the OCC’s 9 risk categories, etc.</p>
<p>The problem with this approach is if you take one of these categories, say Reputation Risk, and try to ask someone in IT to fill out a risk assessment on this category, they won’t know where to begin. They can only speak to what they know, and most IT professionals haven’t made the connection between what they know and reputation risk.</p>
<p>A better approach is to attract as many as you can with honey. The honey in this case is cross-functional risk assessments.</p>
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<h3>Get More out of Cross-Functional Risk Assessments</h3>
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<p>With cross-functional risk assessments, you’ll be able to gather, re-aggregate, and report on all the information you need to protect your business from a myriad of risks.</p>
<p>First, my presentation is summarized in our eBook <a href="https://www.logicmanager.com/download-better-risk-assessments-financial-ebook/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">“5 Steps for Better Risk Assessments: A Special Edition for the Financial Industry,”</a> so feel free to download a free copy for an in-depth recap.</p>
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<p>For the purposes of this blog, however, I’d like to reiterate three things:</p>
<p><strong>1) The key to cross-functional risk assessments is taking a multi-disciplinary approach.</strong> Risk management is in every employee’s job title, whether they know it not. Having their engagement in the risk assessment process is crucial to achieving an attract-with-honey effect. <a href="https://www.logicmanager.com/download-risk-based-approach-wheel/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Download the Risk-Based Approach Wheel I showed ABA attendees here.</a> Use it to connect with other professionals in your organization like Audit or Compliance by starting with their priorities and working your way around the risk management cycle from their most preferred starting point<u>!</u></p>
<p><strong>2) Rethink your risk assessment categories.</strong> Instead of creating risk assessments with categories that align specifically with FFIEC or OCC categories, use standards in scoring, naming conventions, and risk libraries to organize them by key departments, key products and services, and key regulations. This way, you’re talking to people about what they know best and getting the most accurate information with the accountability for those risks attached.</p>
<p><strong>3) Re-aggregate risk assessment information to align with big regulator risk categories and more</strong>. With a <a href="https://www.logicmanager.com/erm-software/product/risk-taxonomy/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">taxonomy</a> in place, and by using the standards from #2 above, you can categorize one risk in multiple ways. Let’s say the Marketing Manager identifies someone hacking into the website as a risk. This would be simultaneously categorized as a marketing risk, an external risk, and a reputation risk (one of the OCC’s main categories).</p>
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<h3>The Why, How, and What of Effective Board Reports</h3>
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<p>Item number three above has everything to do with developing a flexible reporting structure. With such a structure, you can take any piece of information you’ve gathered from across the enterprise and dig into it in a multitude of ways. This requires an interrelated and standardized structured approach called a “taxonomy”.</p>
<p>Above we talked about how aligning with the main regulatory bodies adds complexity to managing risk in the financial industry. Another faction of this complexity is aligning with strategic goals set by the board. So, not only are risk managers juggling hundreds of regulations, they also have the board and others calling on them for evidence that their ERM program is effectively supporting the goals they set for the company.</p>
<p>Risk managers may not at first realize the massive amounts of information already on hand throughout their bank covering all areas of the organization down to the front lines. Without standards and taxonomy to link and relate all the connections across that information, it can be very challenging to portray how operational activities also align with the business’s greater strategic goals. Historically, boards of directors and senior leadership have struggled to engage with risk managers because information is typically not collected and distilled in the most effective way. The boards want to see the bottom line: how risk management is supporting their strategic objectives.</p>
<p>I’d like to give you a few tips on how you can overcome this challenge and paint the big picture for the board, while distilling this information into a digestible yet insightful format.</p>
<p>First, the taxonomy I describe above is a great tool for aggregating risk in many different ways. With a flexible categorization structure in place, you can pull reports on risks tied to different departments, products, regulations, or even strategic goals. The board wants concise deliverables providing evidence that the appropriate risk management controls are in place and that they are effective over the risks they are designed to mitigate. They also want to know that these risks are monitored, so that they won’t be the next name in the headlines.</p>
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<p>Another tip to keep in mind, is to collect information in a way that enables your reports to be flexible. Compiling enterprise-wide risk into <a href="https://www.logicmanager.com/erm-software/product/dashboard-reports/">strategic dashboards</a>gives the board a comprehensive look at the “why” of an aggregated view of risk and its implications, and also provides the flexibility to drill into individual risks all the way out to the front-business lines where the risks are known. They are strategic in that the information in the dashboard can be dynamic but the presentation framework remains the same so that board members can quickly zoom in on the insights they need without needing to interpret the structure of how the data was gathered or changing the presentation style that is being used. The board doesn’t need to be overwhelmed with all of the risks at the business activity level, but it is best to have the option to dig deeper and re-aggregate information within the report.</p>
<p>Once the board has a clear view of their organization’s risk, they can rest assured that your risk management program has their strategic organizational goals in mind. As a result, the board will continue to provide the necessary support for your program.</p>
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<p>It was an honor presenting at the ABA and RMA GCOR XIII Conferences, where I got to share and learn from risk professionals in one of the most advanced industries in the risk management fields. I hope attendees, and new readers, found these tips and tools useful!</p>
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<p><strong><em>This article was originally published on <a href="https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></strong></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826">Flexible Risk Assessments and Effective Reporting in the Banking Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<item>
		<title>Ontario Government Takes a Different Approach to Auto Insurance Reforms</title>
		<link>https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813</link>
				<comments>https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813#respond</comments>
				<pubDate>Fri, 12 Apr 2019 14:02:00 +0000</pubDate>
		<dc:creator><![CDATA[Willie Handler]]></dc:creator>
				<category><![CDATA[Auto]]></category>

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				<description><![CDATA[<p>The 2019 Ontario Budget is out and there's some positive news for auto insurance consumers.Finally, a government in Ontario takes a slightly different approach to repairing a damaged auto insurance product. For too long, the focus has been largely on n...</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813">Ontario Government Takes a Different Approach to Auto Insurance Reforms</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8815 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-300x201.jpg" alt="" width="300" height="201" srcset="https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-300x201.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-598x400.jpg 598w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560.jpg 723w" sizes="(max-width: 300px) 100vw, 300px" />The 2019 Ontario Budget is out and there’s some positive news for auto insurance consumers.</p>
<p>Finally, a government in Ontario takes a slightly different approach to repairing a damaged auto insurance product. For too long, the focus has been largely on no-fault accident benefits and ignoring virtually every other aspect of the product. The result has been a complex system that has not kept up with our changing society.</p>
<p>Here is what the 2019 Ontario Budget has to say about auto insurance:</p>
<p><b>1. Lowering Costs and Fighting Fraud</b></p>
<p>Fighting fraud is a common theme for every government. The current government is looking for FSRA to overhaul the licensing system for service providers to reduce regulatory burden and fraud, including treatment fees. I’m not impressed with the existing licensing system. When I worked on it in the early part of the decade, I had intended on it to truly focus on identifying fraudulent operators. It would have only licensed the largest billing facilities. Instead, the government just designed a broad licensing system. Hopefully, someone will look back at the original intent. Streamlining the system will also reduce costs.</p>
<p>The government has indicated that they would like to see contingency fee agreements become more transparent and review the effectiveness of contingency fees. Sounds like a good idea.</p>
<p>The government has also signalled a desire to establish a Serious Fraud Office. This is an idea that has been bounced around for years now. My view is that it is the insurance industry that has to take the lead on fraud as is the case with other industries.</p>
<p>The government also is pushing the idea of more e-commerce. That would mean more electronic communications when purchasing insurance and making claims. The Budget specifically mentions electronic proof of insurance, something <a href="http://williehandler.blogspot.com/2013/05/electronic-proof.html">I advocated for 6 years ago</a>.</p>
<p><b>2. Increasing Accessibility and Affordability</b></p>
<p>This is a common theme when a government talks about auto insurance. How to achieve it is the trick. The Budget leaves the door open to basing rates on credit scoring and preferred providers for vehicle repairs and health care services. I don’t see credit scores and providing more accessibility or affordability. It will have the opposite affect on low income families. Insurers will gladly swap territorial rating for credit score rating.</p>
<p>The government is also planning to simplify insurance forms, policies and other insurance documents. I’m all for that!</p>
<p><b>3. Adopting the Driver Car Plan</b></p>
<p>This is the most intriguing part of the Budget announcement for me. It talks about a Driver Care Card, which would streamline access to care. I have no idea what this would look like. It does relate to the long awaited programs of care.</p>
<p>I initiated the Programs of Care project before I left FSCO in 2011 and agree with its introduction. Led by Dr. Pierre Côté, the work on developing programs of care was completed in three years. Long overdue, this aspect of the Marshall recommendations and subsequent government announcement has been in development for six years.</p>
<p>Programs of care were first developed by the Workplace Safety and Insurance Board (WSIB) to deal with low back pain. The initial whiplash associated disorder guidelines were created in 2003 based on the WSIB low back pain program of care. FSCO had undertaken to develop programs of care for a range of soft tissue injuries. An interim solution was the introduction of the minor injury definition and minor injury guideline in 2010. The expectation is that programs of care will simplify access to treatment and reduce disputes in the system. If that does occur, it will potentially reduce some of the transactional costs in the system.</p>
<p>Finally, the no-fault accident benefits cap on medical, rehabilitation and attendant care benefits for those catastrophically injured will be restored to $2 million. The cap was reduced to $1 million in 2016 by the previous government and was one of the worst changes they made. I’m for controlling costs for those with minor injuries but those with the most serious injuries need to be properly covered.</p>
<p><b> 4. Increasing Competition</b></p>
<p>Increasing competition really means breaking the existing mold where everyone has the same type of auto insurance product. Driving behaviour, usage and technology have all changed. The product needs to reflect that. So I agree, lets see some innovative products. As long as the regulator ensures consumers are adequately protected.</p>
<p>Again, the government is looking to FSRA to achieve these changes. What can we expect to see? Things like pay-as-you-go insurance. Great for people who don’t drive much. Perhaps more telematics. A simplified rate approval process. Streamlining the SABS, something I’ve been advocating for, for years. Higher limits for small claims court.</p>
<p>This is an ambitious agenda and a break from previous reform initiatives. Can’t wait to see how this plays out.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813">Ontario Government Takes a Different Approach to Auto Insurance Reforms</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>P&C Brokerage Industry – Let’s talk Management Buy-ins</title>
		<link>https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803</link>
				<comments>https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803#respond</comments>
				<pubDate>Mon, 01 Apr 2019 17:54:35 +0000</pubDate>
		<dc:creator><![CDATA[Mike Berris]]></dc:creator>
				<category><![CDATA[Business Risks]]></category>
		<category><![CDATA[Business Strategy]]></category>
		<category><![CDATA[Earnings / Ratings]]></category>
		<category><![CDATA[Enterprise Risk Management]]></category>
		<category><![CDATA[Insurance Linked Securities]]></category>
		<category><![CDATA[Markets / Coverages]]></category>
		<category><![CDATA[brokerage coverage]]></category>
		<category><![CDATA[management buy-ins]]></category>
		<category><![CDATA[mike berris]]></category>
		<category><![CDATA[p&c insurance]]></category>
		<category><![CDATA[smythe advisory]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8803</guid>
				<description><![CDATA[<p>Let me start by saying that some of the best managed and most profitable brokerages in Canada are employee-owned. We believe that every succession planning process should, at the very least, consider this option. When talking about management buy-ins, a<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803">P&C Brokerage Industry – Let’s talk Management Buy-ins</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p>Let me start by saying that some of the best managed and most profitable brokerages in Canada are employee-owned. We believe that every succession planning process should, at the very least, consider this option.</p>
<p><img class="alignnone size-large wp-image-4130" src="https://www.smytheadvisory.com/wp-content/uploads/2019/03/management-buy-ins-1024x614.jpg" alt="Management Buy-ins" width="1024" height="614" /></p>
<p>When talking about management buy-ins, a good place to start is to understand the reasons why we don’t see more of them. Keep in mind, some of these reasons are sometimes more perception than reality. Here are a few examples:</p>
<ul>
<li><strong>Lack of Bench Strength</strong> – your organization does not have the talented young people who have the drive and ability to run your business</li>
<li><strong>Finances</strong> – employees don’t have the financial strength to commit capital to do the deal</li>
<li><strong>Financing</strong> – the organization does not generate enough cash flow to support the debt servicing costs given current valuations</li>
<li><strong>Too Complicated</strong> – it is easier to continue to operate and then monetize through a full divestiture</li>
<li><strong>Control</strong> – while you own the business, you want full control</li>
</ul>
<p>Of course, all these issues are real and, in many cases, good reasons for not under-taking a management buy-in. Having said that, I think management buy-ins make sense in certain situations and they are often overlooked because the brokerage owner either doesn’t know this might be a viable option or, they don’t know how to proceed.</p>
<p>Let’s look at some fundamentals of a good plan. First, there must be a process from which to evaluate what is best for you, your family, the organization and then the potential investors. While each situation is different, we typically suggest the following:</p>
<ul>
<li>With the help of family, and or a trusted advisor, come up with some specific financial outcome goals. It might be as simple as I think my brokerage is worth $5 million. I would like to monetize $2 million now with the balance greater than $5 million in seven years;</li>
<li>Complete a deep dive of the business. The resulting document describes the composition of the business from an underlying book and financial perspective, lays out the possible market valuation, cash flow available for debt service and areas of possible value enhancement. This will be needed for both investors and potential financing sources.</li>
<li>The deep dive help focus on the type of investor that is best suited for you and your brokerage. It might be current employees, outside producers, an insurance company or even an executive that is currently working at an insurance company.</li>
<li>Prepare a detailed step-by-step plan of all the structural issues that must be addressed, including income tax, legal structure, governance and potential financial structure.</li>
<li>Execute the plan.</li>
</ul>
<p>Proper planning and preparation are the key to success. There is little point in inviting employees or outside investors in the process unless they are going to add value. It is a far better approach to advertise for exactly who you’re looking for. There will be a lot of interest if they see a possible return.</p>
<p>The same goes for governance. You need to protect your investment and exercise ultimate control. At the same time, the investment must be meaningful to your new partners. A strong governance model supported by a well-crafted shareholder agreement is critical. The agreement needs to address those issues that require unanimous shareholder consent, under what conditions shareholders can obtain more or divest in shares and how they will be valued. There are a number of great lawyers who both understand the P&C sector and know how do craft effective agreements.</p>
<p>There are two issues that generally take some finesse. In the case of employee investors, it is getting them to commit some personal capital. For younger people, they generally don’t have any capital. But if they do, then it is paramount that they have at least something at risk. While you can work around this, I struggle to justify why a Brokerage Owner should commit to a plan to transfer ownership without some immediate commitment by the investor.</p>
<p>The second issue is financing the transaction. The financing approach depends on the circumstances. Banks, insurance companies and private investors each have unique advantages and potential challenges. Your chosen plan will play an important role in what type of financing you look for.</p>
<p>Management buy-ins should be part of an overall plan that leads to the eventual transition of ownership. Yes, there are complicated financial and emotional considerations. But, with a well-designed tax and financial strategy you can protect your family’s financial future, reduce the organizations dependence on you and ultimately increase the overall valuation of the business.</p>
<p>If you have any questions or comments, please send them to <a href="https://www.smytheadvisory.com/about/professionals/mike-berris/"><strong>Mike Berris</strong></a> at <a href="mailto:mberris@smythecpa.com"><strong>mberris@smythecpa.com</strong></a>.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803">P&C Brokerage Industry – Let’s talk Management Buy-ins</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</title>
		<link>https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790</link>
				<comments>https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790#respond</comments>
				<pubDate>Tue, 19 Mar 2019 17:51:05 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8790</guid>
				<description><![CDATA[<p>Cybersecurity vulnerabilities are an increasing concern for every company in every industry. Year over year, data breaches increase by 75%. Why are they becoming more prevalent, and how can you protect your business? Before you can protect your company from<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790">Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><a href="https://storage.ning.com/topology/rest/1.0/file/get/1501598821?profile=original" target="_blank" rel="noopener"><img class="align-right alignright" src="https://storage.ning.com/topology/rest/1.0/file/get/1501598821?profile=RESIZE_710x" width="350" /></a>Cybersecurity vulnerabilities are an increasing concern for every company in every industry. Year over year, data breaches increase by 75%. Why are they becoming more prevalent, and how can you protect your business?</p>
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<p>Before you can protect your company from a data breach, you have to understand why they’re occurring. So let’s look at some statistics:</p>
<ul>
<li><a href="https://www.verizondigitalmedia.com/blog/2017/07/2017-verizon-data-breach-investigations-report/" target="_blank" rel="nofollow noopener"><strong>81%</strong></a> of hacking-related breaches leveraged either stolen and/or weak passwords</li>
<li><a href="https://www.verizondigitalmedia.com/blog/2017/07/2017-verizon-data-breach-investigations-report/" target="_blank" rel="nofollow noopener"><strong>70%</strong></a> of employees reuse passwords at work</li>
<li>Ransomware is the top variety of malicious software, found in <a href="https://www.verizonenterprise.com/resources/reports/rp_DBIR_2018_Report_execsummary_en_xg.pdf" target="_blank" rel="nofollow noopener"><strong>39%</strong></a> of cases where malware was identified</li>
<li><a href="https://www.businesswire.com/news/home/20181115005665/en/Opus-Ponemon-Institute-Announce-Results-2018-Third-Party" target="_blank" rel="nofollow noopener"><strong>59%</strong></a> of companies experienced a data breach caused by a third party</li>
</ul>
<p>These stats start to give us an idea of the true root cause of cybersecurity risk. Yes, there are bad actors involved, but data breaches also have everything to do with governance.</p>
<p>Realizing the connection between good governance and cybersecurity is in itself a huge benefit to an organization. Not only do data breaches hold financial and intellectual property concerns, they also have the potential to impact a company’s reputation.</p>
<p>Because of <a href="https://www.logicmanager.com/download-see-through-economy-infographic/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">the See-Through Economy</a>, consumers are more aware of data breaches than ever before, they’ve cried out for better protection, and regulators have taken steps towards providing it for them. More opportunities to be hit with regulatory lawsuits mean more chances for a company’s brand to suffer.</p>
<p>The good news is, the leading causes of cyber breaches – weak passwords, ransomware, and third parties – can be entirely mitigated with good governance.</p>
<p> </p>
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<h3 class="title-heading-left"><strong>Cybersecurity Risks Are a Governance Problem</strong></h3>
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<div class="fusion-clearfix">There a few common misconceptions about cybersecurity. For one, many people believe breaches occur because of insufficient technology, but extensive spending on specific cybersecurity solutions has created more gaps than it’s closed. In reality, most cybersecurity issues are governance problems.</div>
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<p>For another, many organizations react by conducting employee training. Training increases awareness but is proven ineffective at changing behavior.</p>
<p>Reducing the risk of a cyber attack is no different from reducing any risk; it begins with identification. Specifically, <a href="https://www.logicmanager.com/erm-software/knowledge-center/best-practice-articles/risk-identification/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">root-cause risk identification</a>, as we’ve started to do with the bullets above.</p>
<p>If 81% of hacking-related data breaches leveraged weak passwords, then expensive point-of-sale solutions or artificial intelligence won’t work.</p>
<p>Additionally, trained employees rarely make an effort to change weak/reused passwords, and the problem lingers. In fact, a <strong><a href="https://blog.lastpass.com/2018/05/psychology-of-passwords-neglect-is-helping-hackers-win.html/" target="_blank" rel="nofollow noopener">survey by </a></strong>LastPass of LogMeIn, a password management tool, found that although 91% of the employees claim to understand the risks of using the same passwords across multiple accounts, 59% said they did so anyway.</p>
<p>Moreover, if over half of data breaches that occur stem from third-parties, what good will more training with employees or more expensive point solutions do?</p>
<p>Chances are, you already have many solid security policies and advanced technology in place. The next step is to implement good governance over them to make sure they’re actually protecting your company.</p>
<p>So how is good governance achieved?</p>
<p> </p>
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<p>Good governance doesn’t happen overnight. It takes a village. A huge misperception people have is that cybersecurity is the IT department’s responsibility. But actually, every department plays a key role. The first step to good governance, then, is realizing what piece of the puzzle each department holds. Consider the following:</p>
<ul>
<li>IT Security – Does not have the complete asset list, meaning it cannot identify all login practices or monitor password quality or access rights</li>
<li>Finance – Knows assets and process owner allocation, but has no method/system for sharing that information with the right parties</li>
<li>Third-Party Management – Has no system for managing authorized assets or sharing information or enforcement of controls</li>
<li>Legal – Has authority, but lacks any control implementation or monitoring</li>
<li>HR – Has no way of notifying application administrators of user entitlement changes</li>
<li>Audit – Has access to an entitlement policy, but doesn’t have a user access list mapped to specific assets</li>
</ul>
<p>The problems detailed above persist as long as departments are unable to communicate effectively. The information they need does exist; it’s a simple matter of finding out how to access and coordinate that information.</p>
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<p>A written password, asset, or access policy will not lead to realized benefits unless these limitations can be overcome. It’s not the existence of the policy itself that improves security; it’s the implementation, or operationalization, of that policy. This is why preventing breaches starts with governance, not technology. The crucial success factor is engaging each business area.</p>
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<h3 class="title-heading-left"><strong>Actively Engage Different Departments in Cybersecurity</strong></h3>
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<p><b>Step 1: Compose and Approve the Policy Itself</b></p>
<p>This step is already performed by the vast majority of organizations. The board or executive leadership decides to mitigate the threat posed by employees’ weak passwords, access rights, and asset lists. It enlists the help of the security department to validate the implementation of these policies.</p>
<p><b>Step 2: Grant the Security Department the Visibility it Needs</b></p>
<p>Here is where most organizations falter. They have a policy, but they can’t implement it or are unsure if all vulnerabilities are covered. The failure to operationalize is therefore a governance problem — an inability to coordinate activities and responsibilities across business silos. Senior leadership leaves it to security to ensure the company is adhering to the new policy because, after all, security has the most subject-matter expertise, right?</p>
<p>In reality, security can only handle certain parts of the policy. A current LogicManager customer reported its prior inability to implement such a policy. They told us, “We’ve been in deadlock for three years. We have a policy drafted, but security has said it only has actionable control over certain parts, and so nothing moves forward.”</p>
<p>LogicManager was able to help for a very simple reason: governance platforms provide a centralized information hub, plus the ability to:</p>
<ol>
<li>Break up roles and responsibilities</li>
<li>Assign those roles to appropriate stakeholders</li>
<li>Create <a href="https://www.logicmanager.com/erm-software/product/tasks-documents/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">automated tasks</a> to monitor the activity and ensure password/access policies are adhered to by <i>all </i>stakeholders</li>
</ol>
<p><b>Step 3. Carry Good Governance Out to Third Parties</b></p>
<p>Since 59% of data breaches stem from a company’s third parties, it’s not enough to shore up internal security, password, and access rights policies. You need to make sure your vendors are taking as many precautions with your data as you are.</p>
<p>How many applications does your company rely on? How many third parties have access to sensitive information? Which employees have access to which? How much access does each employee need to get their job done?</p>
<p>Enterprise risk management platforms can help answer these questions, as the best of them can help you govern your <a href="https://www.logicmanager.com/erm-software/plugins/software-asset-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">software asset management</a> and user <strong><a href="https://www.logicmanager.com/erm-software/plugins/user-access-review-template/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">access reviews.</a></strong></p>
<p>Again, IT isn’t solely responsible for keeping track of these vendors. Every organization’s finance department maintains a “master asset list” of all applications, since they approve the budgets and execute purchase orders for every application.</p>
<div class="fusion-text">
<p>Think about your payment systems, payroll system, customer relationship management, vendor management, and other third-party software applications. Once finance provides the list of assets and which departments own them, security simply reaches out to each process owner to operationalize the policy.</p>
<p><b>Step 4: Hold Each Party Accountable for its Piece</b></p>
<p>When security is isolated, they cannot operationalize the policy, and it’s paralyzed. But after security has access to information about which managers use which applications, it’s a simple matter of using the ERM system to push out <a href="https://www.logicmanager.com/erm-software/product/tasks-documents/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">tasks/notifications</a> and track the results.</p>
<p>Each process owner receives an automatic task within the platform, which includes background on the policy as well as what is required of the individual manager. Since it’s functional managers, not the security department, that know which employees should have access rights, it’s easiest to get this information by pushing the requirements and questions down to the front lines.</p>
<p>After process owners handle their own pieces of the policy, they send their information back to the security department, where it can be monitored. The same process can then occur with vendor management; which vendors have access to password-protected applications, and how should their contracts be updated to reflect proper enforcement of the policy? Enforcement is then managed through contract terms and audit capabilities (based on <strong><a href="https://www.logicmanager.com/erm-software/product/assess/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">risk assessment</a></strong> priorities).</p>
<p>So consider how achieving good governance can help you eliminate the vast majority of your cybersecurity risk by operationalizing the policies you already have in place across departments and out to third parties.</p>
<p>With the right <strong><a href="https://www.logicmanager.com/erm-software/product/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">governance solution</a></strong>, you should be able to operationalize any one of your policies within 90 days. If you operationalize your password policy across the enterprise, you’ve eliminated 81% of your cybersecurity risk.</p>
<p><em>This article was originally posted on <a href="https://www.logicmanager.com/erm-software/2019/03/28/eliminate-cybersecurity-vulnerabilities/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790">Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>How can insurers stay relevant when insurance ceases to be mandatory?</title>
		<link>https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795</link>
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				<pubDate>Tue, 19 Mar 2019 17:36:18 +0000</pubDate>
		<dc:creator><![CDATA[Christian Bieck]]></dc:creator>
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				<description><![CDATA[<p>Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of […]</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795">How can insurers stay relevant when insurance ceases to be mandatory?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8797 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956.jpg 724w" sizes="(max-width: 300px) 100vw, 300px" />Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of insurance customers.</p>
<p>But those barriers are starting to crumble. Autonomous cars, for example, might be a future vision. But nowadays, technology visions tend to become reality sooner than we thought; and when this one does, insurers will lose one of their biggest entry points into young customers’ wallets—auto insurance. With sufficient technical sophistication in self-driving systems and once a certain threshold of these cars is reached, legislators in most countries will consider banning human drivers. That will transform auto from a personal line to a commercial, fleet-based line, as it suddenly becomes more feasible to not own, but to share, a car. And the entity at fault becomes the software “behind the wheel,” not the passenger, anyway.</p>
<p>When that happens—which means when insurance stops being a mandatory requirement—how do insurers stay relevant to their customers? That is a question we explore in our latest <strong><a href="https://ibm.co/2FDVMu8" rel="noopener">IBM Institute for Business Value study, “Solving the customer relevance riddle: How AI-derived insights can help insurers deliver what customers really want”</a>.</strong></p>
<p>Already we are seeing non-traditional players carving out niches in the industry, <a href="https://www.ibm.com/thought-leadership/institute-business-value/report/insurtech">such as insurtechs</a>, adjacent businesses and digital giants. For insurers to thrive in this “big squeeze,” they need to reframe their roles to generate better business outcomes using customer segmentation and improved risk profiling. More importantly, they need to generate better customer outcomes with more individual tailoring and personalized communications, improved transparency and holistic solutions that actually meet customer needs.</p>
<p>How can insurers do this? The short answer is “by becoming a Cognitive Insurer.” That means shifting from “react and pay” to “predict and prevent.” The foundation for this is data—owned, bought or shared—the smart use of that data, and the associated technologies.</p>
<p>The technology that is likely to be the biggest differentiator in a Cognitive Insurer is artificial intelligence (AI). Insurers with a data-oriented mindset are heavily investing in AI, with more than 80% at least considering AI. Thirty-five percent of outperforming insurers are at least in the pilot stage with an AI project, with most insurers looking to bolster the top line with these projects—customer satisfaction being foremost on their minds.</p>
<p>Read more details, case studies and recommendations as to what steps to take to become a Cognitive Insurer in our latest study, <a href="https://ibm.co/2FDVMu8" rel="noopener"><strong>“Solving the customer relevance riddle: How AI-derived insights can help insurers deliver what customers really want.”</strong></a></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795">How can insurers stay relevant when insurance ceases to be mandatory?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>A brief primer on government disaster assistance in Canada</title>
		<link>https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772</link>
				<comments>https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772#respond</comments>
				<pubDate>Tue, 12 Mar 2019 20:37:25 +0000</pubDate>
		<dc:creator><![CDATA[Glenn McGillivray]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8772</guid>
				<description><![CDATA[<p>Nine provinces and one territory in the country have formal disaster assistance programs designed to help homeowners, renters, small business owners, not-for-profits and local governments recover after a loss event. Prince Edward Island, Yukon and Nunavut do not currently have<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772">A brief primer on government disaster assistance in Canada</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<div id="attachment_8773" style="width: 427px" class="wp-caption alignright"><img aria-describedby="caption-attachment-8773" class=" wp-image-8773" src="https://www.insblogs.com/wp-content/uploads/2019/03/Looking_downtown_from_Riverfront_Ave_Calgary_Flood_2013-300x199.jpg" alt="" width="417" height="248" /><p id="caption-attachment-8773" class="wp-caption-text">By Ryan L. C. Quan https://commons.wikimedia.org/w/index.php?curid=26873355</p></div>
<p class="p1">Nine provinces and one territory in the country have formal disaster assistance programs designed to help homeowners, renters, small business owners, not-for-profits and local governments recover after a loss event. Prince Edward Island, Yukon and Nunavut do not currently have formal programs and, thus, when they need access to funds as the result of a disaster, they retain a certain amount and apply for reimbursement for the rest using the formula outlined in the federal framework (see below).</p>
<p class="p1">While each provincial disaster assistance program has its own variations, the programs probably have more in common with each other – at least in principle – than not.</p>
<p class="p1">For the most part, provincial disaster assistance is intended to provide funding to those who suffered loss and damage from an event that is uninsurable (i.e. where private insurance is not reasonably or readily available). Some provinces use the term ‘uninsurable’ but leave out any further explanations, while others (like British Columbia) explicitly set out which hazards the program won’t cover (“Insurable damages in the private sector from<span class="Apple-converted-space">  </span>wildfires,<span class="Apple-converted-space">  </span>earthquakes , snow load, wind storms, sewer or sump pit back-up, water entry from above ground (including roofs, windows or other areas of the building), are NOT eligible for DFA.”)</p>
<p class="p1">Some provinces offer very specific lists of items they will cover, with only a few having no limits on replacement items (most will only cover basic or standard replacement models). For example, Manitoba offers coverage for:</p>
<p class="p1"><em>Homeowners:</em><span class="Apple-converted-space">  </span>Beds, essential furnishings, essential clothing and primary appliances (eg. furnaces, water heaters, fridges, stoves, computers and televisions).</p>
<p class="p1"><em>Business owners:</em> Supplies, essential work clothing and other necessities.</p>
<p class="p1"><em>Agricultural claims:</em> Livestock fencing, staged and stored crop and some field erosion. DFA may also help cover the cost of clean-up, repairs and temporary relocation.</p>
<p class="p1">Most programs offer very specific payout caps, while only a couple do not.</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td1" valign="top"></td>
<td class="td2" valign="top">
<p class="p1"><b>Coverage limits</b></p>
</td>
<td class="td3" valign="top">
<p class="p1"><b>Item limits</b></p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">British Columba</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $300,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Alberta</p>
</td>
<td class="td2" valign="top">
<p class="p1">No cap</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Saskatchewan</p>
</td>
<td class="td2" valign="top">
<p class="p1">95% of eligible damage to $240,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Manitoba</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $240,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Ontario</p>
</td>
<td class="td2" valign="top">
<p class="p1">90% of eligible damage to $250,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Quebec</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $150,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">New Brunswick</p>
</td>
<td class="td2" valign="top">
<p class="p1">100% of eligible damage to $120,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Nova Scotia</p>
</td>
<td class="td2" valign="top">
<p class="p1">100% of eligible damage to $80,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Prince Edward Island*</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Newfoundland & Labrador</p>
</td>
<td class="td2" valign="top">
<p class="p1">No cap</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Yukon</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Northwest Territories</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $100,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Nunavut</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
</tbody>
</table>
<p class="p3"><em><span class="s1">* </span>The PEI Emergency Measures Organization is currently working on formalizing a provincial framework which aligns with the other Atlantic Provinces.</em></p>
<p> </p>
<p class="p1">Virtually all provincial programs are very explicit about covering primary residences only (like Saskatchewan, Manitoba and Ontario).</p>
<p class="p1">Some programs require that local governments apply to their respective provincial government to get recognized for assistance before individuals can apply themselves (like Saskatchewan and Alberta), while others allow applications by anyone once the province declares an event to be eligible for assistance. British Columbia and New Brunswick are examples of two provinces that provide a running list of active eligible disasters on their respective disaster assistance web pages.</p>
<p class="p1">Here are links to the major provincial disaster assistance programs in Canada:</p>
<p class="p1"><a href="https://www2.gov.bc.ca/gov/content/safety/emergency-preparedness-response-recovery/emergency-response-and-recovery/disaster-financial-assistance" target="_blank" rel="noopener"><b>British Columbia – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="http://www.aema.alberta.ca/assistance-and-recovery-support" target="_blank" rel="noopener"><b>Alberta – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.saskatchewan.ca/residents/environment-public-health-and-safety/access-funding-through-the-provincial-disaster-assistance-program" target="_blank" rel="noopener"><b>Saskatchewan – Provincial Disaster Assistance Program (PDAP)</b></a></p>
<p class="p1"><a href="https://www.gov.mb.ca/emo/recover/home/dfa_home.html" target="_blank" rel="noopener"><b>Manitoba – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.ontario.ca/page/apply-disaster-recovery-assistance" target="_blank" rel="noopener"><b>Ontario – Disaster Recovery Assistance for Ontarians (DRAO)</b></a></p>
<p class="p1"><a href="https://www.securitepublique.gouv.qc.ca/en/civil-protection/financial-disaster-victims.html" target="_blank" rel="noopener"><b>Quebec – Financial Assistance For Disaster Victims</b></a></p>
<p class="p1"><a href="https://www2.gnb.ca/content/gnb/en/news/public_alerts/report_damages.html" target="_blank" rel="noopener"><b>New Brunswick – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://novascotia.ca/dma/emo/disaster_financial_assistance/program_limits.asp" target="_blank" rel="noopener"><b>Nova Scotia – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.gov.nl.ca/fes/emo/DFAPPolicyStatement.pdf" target="_blank" rel="noopener"><b>Newfoundland & Labrador – Disaster Financial Assistance Program (NL-DFAP)</b></a></p>
<p class="p1"><a href="https://www.maca.gov.nt.ca/en/services/disaster-financial-assistance" target="_blank" rel="noopener"><b>Northwest Territories – Disaster Financial Assistance</b></a></p>
<p> </p>
<p class="p1"><b>Federal Disaster Financial Assistance Arrangements (DFAAs)</b></p>
<p class="p1">The provision of federal disaster assistance seems to be where most people get confused about how disaster assistance works in Canada.</p>
<p class="p1">As noted on Public Safety Canada’s website, “In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements (DFAA), administered by Public Safety Canada.<span class="Apple-converted-space">  </span>When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provide the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.”</p>
<p class="p1">Federal disaster assistance is paid by the federal government to provinces and territories and not directly to individuals or non-governmental entities. One of the most common misconceptions is that individuals can apply directly to the federal government for assistance, but this is not the case.</p>
<p class="p1">DFAA work on a cost sharing basis and uses a formula. For the period January 1, 2019 to December 31, 2019, the formula is as follows:</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td4" valign="top">
<p class="p1"><b>Eligible provincial expense thresholds</b></p>
<p class="p1"><b>(per capita of population)</b></p>
</td>
<td class="td4" valign="top">
<p class="p1"><b>Government of Canada share</b></p>
<p class="p1"><b>(percentage)</b></p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">First $3.19</p>
</td>
<td class="td4" valign="top">
<p class="p1">0</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Next $6.39</p>
</td>
<td class="td4" valign="top">
<p class="p1">50</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Next $6.39</p>
</td>
<td class="td4" valign="top">
<p class="p1">75</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Remainder</p>
</td>
<td class="td4" valign="top">
<p class="p1">90</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p class="p1">Thus, the DFAAs work in a similar manner to reinsurance.</p>
<p class="p1">Public Safety Canada provides the following as an example of how the DFAAs would work for a disaster in a province with a population of 1 million where the total eligible expenses for responding to and recovering from a disaster are $20 million:</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td5" valign="top">
<p class="p1"><b>Eligible Expenditures</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>Provincial or Territorial Government</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>Government of Canada</b></p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">First $3.19 per capita (100% provincial/territorial)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,190,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">Nil</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Next $6.39 per capita (50%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,195,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,195,000</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Next $6.39 per capita (75%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$1,597,500</p>
</td>
<td class="td5" valign="top">
<p class="p1">$4,792,500</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Remainder (90%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$403,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,627,000</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1"><b>TOTAL</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>$8,385,500</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>$11,641,500</b></p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p class="p1"><b>Disaster assistance and overland flooding</b></p>
<p class="p1">As noted at the outset, provincial disaster assistance is intended to provide funding for uninsurable losses. As such, and because many hazards are insurable in Canada, the bulk of provincial and federal disaster assistance paid out historically has been for overland flood. But this, it appears, will change.</p>
<p class="p1">With the introduction of overland flood insurance in Canada in February 2015, and with several companies now offering the coverage, some provincial disaster assistance programs have made it clear that the writing is on the wall for the payment of disaster assistance for overland flood.</p>
<p class="p1">On the webpage for its disaster assistance program Alberta, for instance, notes that “Because the DRP [Disaster Recovery Program] provides assistance for damages that are considered uninsurable, overland flood insurance may soon impact eligibility for DRP assistance.”</p>
<p class="p1">Likewise, Saskatchewan notes that “…insurance providers recently started to offer policies that protect homeowners from overland flooding. The Government of Saskatchewan advises all property owners to obtain adequate coverage for their property.” The province has made available an Overland Flood Insurance fact sheet and advises property owners to contact their insurance company about flood coverage.</p>
<p class="p1">And in British Columbia, <a href="https://www2.gov.bc.ca/assets/gov/public-safety-and-emergency-services/emergency-preparedness-response-recovery/embc/dfa/residential_flood_insurance.pdf" target="_blank" rel="noopener">a letter was issued</a> by Emergency Management BC (EMBC) in May 2016 outlining the development of the burgeoning flood insurance market in Canada. The letter warns: “Over the next several years as additional insurance options roll out, EMBC will apply discretion in how it determines eligibility. For example, a homeowner or tenant would not be expected to amend their existing policy as soon as overland flood insurance becomes available. But, DFA may be denied if overland flood insurance was available on renewal and they chose not to purchase it.”</p>
<p class="p1">There is an intricate, often complicated relationship between the existence or availability of private insurance and the provision of provincial disaster assistance. This relationship has taken a few new twists with the introduction of overland flood insurance in the country. And, so, it is worth keeping on eye on how provincial disaster assistance programs deal with the proliferation of overland flood insurance products and how they decide what the impact will be on the provision of disaster assistance.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772">A brief primer on government disaster assistance in Canada</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>How to Tackle The Top Three Risks in the Energy Industry</title>
		<link>https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767</link>
				<comments>https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767#respond</comments>
				<pubDate>Fri, 08 Mar 2019 14:29:06 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8767</guid>
				<description><![CDATA[<p>For the first time, reputation risk, organizational culture, and cybersecurity have all landed among the top five risks in the energy industry. How can energy companies tackle all of these risks without wasting time and money on additional resources? This<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767">How to Tackle The Top Three Risks in the Energy Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><img class="size-medium wp-image-8768 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />For the first time, reputation risk, organizational culture, and cybersecurity have all landed among the top five risks in the energy industry. How can energy companies tackle all of these risks without wasting time and money on additional resources?</p>
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<p>This year at my <a href="https://www.irmi.com/conferences/energy-risk-insurance-conference"><strong>IRMI Energy Risk and Insurance Conference</strong></a> session, I showed attendees how they could tackle all three of these top-priority risks with enterprise risk management.</p>
<p>The key is adopting a truly integrated approach to risk management. The truth is, energy companies already collect much of the information they need to build a mature risk management program. More often than not, however, organizations fail to engage all departments and levels of the organization to share this information cross-functionally and to the right levels to make decisions.</p>
<p>During my session at 2019 IRMI ERIC, I walked attendees through, step-by-step, how their organizations can implement a risk-based approach to build a risk culture and cybersecurity program that mitigates reputational risks before they occur.</p>
<p>Whether you made it to this year’s conference or not, I wanted to share some of my takeaways from the session, as well as some tools I presented to facilitated a risk-based approach.</p>
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<h3>Emerging Risks in the Energy Industry</h3>
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<p>According to the report <strong><a href="https://www.protiviti.com/US-en/insights/protiviti-top-risks-survey">“Executive Perspectives on Top Risks 2019”</a></strong>, energy and utility companies rated organizational risk to have a ‘significant impact’ on operations in response to the following statement: “Our organization’s culture may not sufficiently encourage the timely identification and escalation of risk issues that have the potential to significantly affect our core operations and achievement of strategic objectives.”</p>
<p>Interestingly enough, when asked about reputational risk such as social media, energy and utility companies responded with a ‘potential impact’ rating. What every company must realize is that in a <a href="https://www.logicmanager.com/erm-software/2018/04/26/see-through-economy-risk-management/"><strong>See-Through Economy</strong></a>, social media is directly tied to reputational risk, which is in turn tied to the achievement of strategic objectives, and often related to cyber risk.</p>
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<div id="attachment_126849" style="width: 496px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-126849" class="wp-image-126849" src="https://www.logicmanager.com/wp-content/uploads/2019/03/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg" alt="" width="486" height="364" /><p id="caption-attachment-126849" class="wp-caption-text">Deepwater Horizon Drilling Unit on Fire, Wikipedia</p></div>
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<p>To drive home the importance of these emerging risks, I revisited some of the biggest scandals in the energy industry, such as the <a href="https://www.boston.com/news/local-news/2018/10/11/ntsb-preliminary-report-merrimack-valley-gas-explosions"><strong>Merrimack Valley Gas Explosion</strong>,</a> the <a href="https://www.businesswire.com/news/home/20181205005825/en/Lieff-Cabraser-Edelson-PC-File-Class-Action%20Unsafe%20infrastructure"><strong>PG&E electric fires</strong>,</a> and of course, the<strong><a href="https://www.logicmanager.com/erm-software/2016/06/02/risk-management-negligence-accident/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> Plains All American Pipeline Spill.</a></strong> Each of these mishaps carried immense reputational risk, and more importantly, were 100% preventable because they stemmed from severe negligence.</p>
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<h3>Mitigate Energy Risks with the Right Tools</h3>
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<p>So how can you prevent negligence and corporate mishaps in the energy industry?</p>
<p>It all starts with having the right tools. At <strong><a href="https://www.irmi.com/conferences/energy-risk-insurance-conference">IRMI ERIC</a></strong>, I presented two physical tools attendees could use every day to facilitate a risk-based approach.</p>
<p>First, I showed them LogicManager’s <strong><a href="https://www.logicmanager.com/download-risk-based-approach-wheel/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Risk-Based Approach Wheel</a></strong>, which gives great visual insight into the activities performed during an end-to-end, iterative ERM process. You can download the Wheel <strong><a href="https://www.logicmanager.com/download-risk-based-approach-wheel/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">here.</a></strong></p>
<p>I also introduced them to another one of my favorite tools – the <a href="https://www.logicmanager.com/download-risk-based-translator/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>Risk-Based Translator</strong></a>. Often times, organizations have a lot of trouble communicating about risk because each department has their own secret lingo of sorts. Download the Translator <a href="https://www.logicmanager.com/download-risk-based-translator/"><strong>here</strong></a> to see how you can create a common language across departments.</p>
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<p>One question I got from an attendee was how to actually engage people. I answered with one of my favorite approaches: get someone in the C-suite in your corner. Try giving a heads up to a risk-minded C-suite executive that you’ll be sending out a risk assessment to key departments. Ask him or her to send out an email to everyone involved, directly thanking those who completed the assessment and expressing how important it is for the company. Then, more people will follow suit and complete the assessment!</p>
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<h3>Tackling Cyber Risk in the Energy Industry</h3>
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<p>The best way to get a risk-based approach up and running is to take it one initiative at a time. In my presentation, I focused on one of the top risks in the energy industry: cybersecurity. This was a great example to use, not only because of its prevalence in the industry, but because it is deeply connected to reputational and organizational risk, as you can imagine.</p>
<p>Just recently, in fact, the North American Electric Reliability Corporation (<a href="https://www.nerc.com/"><strong>NERC</strong></a>) fined an energy company <strong><a href="https://www.secureworldexpo.com/industry-news/4-things-to-learn-from-cybersecurity-failures">$10 million</a></strong> for over 100 physical and cyber security violations to the regulatory authority’s Critical Infrastructure Protection (<a href="https://www.nerc.com/pa/Stand/Pages/CIPStandards.aspx"><strong>CIP</strong></a>) standards. It’s the biggest fine NERC has ever levied for CIP violations.</p>
<p>Complying with a standard such as CIP is a huge, cross-functional effort in and of itself. When you come to terms with the fact that compliance is the minimum operating standard, protecting your organization from cyber risk becomes an even larger task.</p>
<p><img class="size-full wp-image-126873 aligncenter" src="https://www.logicmanager.com/wp-content/uploads/2019/03/2019-IRMI-Presentation-Chart.png" alt="" width="908" height="310" /></p>
<p>At IRMI ERIC 2019, I advised my audience to take the following steps:</p>
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<li>Break down a standard like NERC CIP into actionable, bite-sized line items and determine which departments they impact</li>
<li>Pick one of these line items, such as required access controls and identify where your organization is excelling and where there are gaps by administering <strong><a href="https://www.logicmanager.com/erm-software/product/assess/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">standardized risk assessments</a></strong> to impacted departments</li>
<li>Once this information is collected, start filling in the gaps with new <a href="https://www.logicmanager.com/erm-software/product/mitigate/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>mitigation activities</strong></a> like dual authentication procedures, password vaults, entitlement policies, etc.</li>
<li>Implement ongoing <a href="https://www.logicmanager.com/erm-software/product/monitor/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>monitoring activities</strong></a> like privileged user access reviews; consider automating these processes with regularly recurring reminders and notifications</li>
<li>Make sure there is a standardized method for <strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">reporting incidents</a></strong> like security and non-performance events</li>
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<p>As always, I would also recommend doing a health check of your ERM program and processes. The best way to do this is by taking the RIMS Risk Maturity Model, which has been recommended by the American Petroleum Institute. You can <strong><a href="http://riskmaturitymodel.org/">take the free Risk Maturity Model assessment here</a></strong> to see how your program stacks up against industry standards.</p>
<p>The energy industry, like many others, is coming to terms with the fact that risks are interdependent. If risks are intertwined, then it can only follow that departments must also be intertwined, and must work together to protect their organization and prevent risks from blooming into disaster through an integrated approach.</p>
<p><em>This article was originally posted on <a href="https://www.logicmanager.com/erm-software/2019/03/06/top-three-risks-energy-industry/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767">How to Tackle The Top Three Risks in the Energy Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>What Can Banks and All Companies Learn from Apple’s Latest Glitch?</title>
		<link>https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759</link>
				<comments>https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759#respond</comments>
				<pubDate>Fri, 22 Feb 2019 14:31:57 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>
		<category><![CDATA[Events]]></category>
		<category><![CDATA[enterprise risk management]]></category>
		<category><![CDATA[Incident Management]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8759</guid>
				<description><![CDATA[<p>Even a $1 trillion company cannot hide in the See-Through Economy. After a fourteen-year-old boy discovered a serious bug in Apple’s group FaceTime feature, his mother e-mailed, faxed, and tweeted the report to Apple. However, it wasn’t until after her<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759">What Can Banks and All Companies Learn from Apple’s Latest Glitch?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><img class="size-medium wp-image-8760 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />Even a $1 trillion company cannot hide in the See-Through Economy. After a fourteen-year-old boy discovered a serious bug in Apple’s group FaceTime feature, his mother e-mailed, faxed, and tweeted the report to Apple. However, it wasn’t until after her tweet went viral that the bug was disabled. How could Apple have responded more efficiently and avoided this reputational risk?</p>
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<p>Most Apple users are familiar with FaceTime, Apple’s video chatting software. The feature had recently been upgraded, so that users could loop multiple people into a group FaceTime.<strong><a href="https://www.cnn.com/2019/01/29/tech/facetime-bug-teen-discovery/index.html"> However, the feature has been disabled as a result of a major glitch</a></strong> discovered a few weeks ago by fourteen-year-old Grant Thompson. The serious privacy flaw could force a user’s device to pick-up an incoming group FaceTime even if they declined the call. The bug even enabled access to the recipient’s camera if they interacted with their device’s hardware.</p>
<p>Upon discovering the significant security and privacy flaw, Thompson’s mother immediately e-mailed a bug report and video to Apple on their support site. She also called and tweeted at CEO Tim Cook and even faxed a letter using her law firm’s letterhead. Despite her efforts, after several weeks the incident report had still not been processed. Thompson didn’t hear back from Apple until after national media outlets broke the news about the FaceTime glitch and traced the report back to her original tweets. Ms. Thompson’s tweet on the other hand, was escalated to the public, instantly. This is an example of the<strong><a href="https://www.logicmanager.com/erm-software/2018/04/26/see-through-economy-risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> See-Through Economy</a></strong> at work, which encapsulates the shift towards transparency and accountability brought on by social media and technology. Before Apple could formally acknowledge the issue, the public had been made well-aware that their privacy was at risk.</p>
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<h3>Reputational Risk in a See-Through Economy</h3>
<p>When there is not a clear path of communication to the company, consumers are empowered by social media to voice their issues. Because an enterprise-wide risk management process was not in place, Apple could not respond and resolve the issue before Ms. Thompson’s tweet went viral on twitter. As a result, the glitch not only exposed Apple to major privacy violation risks, but also to reputational risk.</p>
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<p>Companies can no longer effectively manage reputational risk after the fact, so they must take a proactive <a href="https://www.logicmanager.com/erm-software/product/risk-based-process/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>risk-based approach</strong> </a>to ensure the risk does not occur in the first place. Customer-facing<strong><a href="https://www.logicmanager.com/incident-management-software-demo/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> incident management software </a></strong>is essential to handling corporate mishaps. With connected incident management tools, organizations can immediately resolve issues through an efficient workflow that directs the incident to the appropriate parties.</p>
<p>Difficulties  in the reporting process prevented the issue from being resolved sooner. Although the tech giant has a bug reporting channel, it is available only to designated specialists in the tech or security field. Given there was no public-facing channel for users to report security and privacy issues, Ms. Thompson used traditional methods including calling their support line, faxing, and tweeting. Unfortunately, the support line she reached was for traditional product support, which was not prepared for escalating security and privacy issues. Once her tweet went viral, Apple’s social media team was able to escalate the issue to the appropriate people; however, the bug publicly demonstrated Apple’s slow response and lack of escalation process.</p>
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<h3>Businesses Need to Revamp Customer-Facing Incident Management</h3>
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<div class="fusion-separator fusion-full-width-sep sep-none">Without enterprise risk management, reporting, responding, and remediating issues is often ineffective and time-consuming. As I previously mentioned, Apple’s reporting process left no options available for Ms. Thompson, who stated “It’s exhausting and exasperating. It’s very poorly set up especially for the average citizen. I feel like I went above and beyond.”</div>
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<p>Apple is not the only corporation who has struggled with implementing customer-facing incident management. As a result of the change in <strong><a href="https://www.wsj.com/articles/rules-designed-to-catch-terrorists-cost-this-unsuspecting-customer-her-bank-account-1531495802">“Know Your Customer”</a></strong> laws, it has been a challenge for financial institutions to execute anti-money laundering regulations properly. <strong><a href="https://soundcloud.com/logicmanager/risk-management-podcast-citibank-michigan-state-larry-nassar">Citibank</a></strong> recently rolled out a compliance program designed to protect customers and the company from illegal financial activity. However, what was initially designed as a program intended to catch terrorists has left multiple innocent customers with frozen bank accounts and zero notice. Without a customer-facing website to escalate issues, the remediation process is time-consuming with significant barriers to reach the appropriate employees.</p>
<p>Citibank is not unlike other banks, financial institutions, and most companies. While many have internal whistle-blower hotlines to report misdeeds, very few companies have reporting channels accessible to customers. Surprisingly, many financial institutions even require physical mail as a part of their complaint reporting process. These channels primarily serve as a means for customers to feel “their voices have been heard”. Often times, financial institutions do not have the management processes to identify and filter risk, fraud and misdeed reported from outside the organization. As a result, the resolution process is ineffective and complaints are typically aggregated over time serving no real purpose over than for process improvement.</p>
<p>With effective enterprise risk management in place, customer responses for a variety of issues can follow a clear and cost-effective path to resolution. Customer-facing incident management offers customers easily-accessible channels to escalate their incident reports. In the See-Through economy, risk transcends every industry. Regardless of what the incident is, be it a major software bug or innocent customers’ bank accounts being inadvertently frozen, incident management and reporting are essential components of<strong><a href="https://www.logicmanager.com/grc-software/risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> effective risk management</a>.</strong></p>
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<h3>Take the Steps to Improve Your Incident Management Program:</h3>
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<p>Without effective<strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> incident management tools, </a></strong>incident reporting can be a large source of liability. Having a disconnected reporting process is not only a disservice to the customers, but can negatively impact the company as well with exposure for negligence.</p>
<p>With the help of an <strong><a href="https://www.logicmanager.com/grc-software/risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">enterprise risk management</a></strong> system, you can stay ahead of the curve in the event of an incident. With <strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">incident reporting software</a></strong><strong>,</strong> you can give customers an outlet to easily submit issues that are immediately forwarded through a remediation workflow. While social media will still be at customers’ finger tips, you can ensure they are satisfied with a seamless and efficient resolution process. <strong><a href="https://www.logicmanager.com/incident-management-software-demo/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Incident management software</a></strong> will also give you a better understanding of why, when, and where incidents are happening, so you can prevent them from recurring in the future. Implementing the following pointers will help to improve your incident management program, so you can avoid ending up like the aforementioned companies.</p>
<ul>
<li><b>Front-line reporting</b>: Empower customers and employees to submit incidents in customized forms that collect all the information your organization will need to engage the appropriate business units  in the resolution process.</li>
</ul>
<ul>
<li><b>Automate Workflows:</b> Design a workflow for each incident to get it routed to the right people across business silos to resolve it efficiently and cost-effectively.</li>
</ul>
<ul>
<li><b>Centralize Incidents: With all departments in one system, they can easily communicate with one another about issues that arise and work towards a solution.</b></li>
</ul>
<ul>
<li><b>Generate Reports:</b> With all of your incident information in one place, you’ll be able to uncover trends within your data. Then, implement controls to prevent future incidents.</li>
</ul>
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<h4>Download our Incident Management eBook</h4>
</div>
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<p>Check out our complimentary eBook, <a href="https://www.logicmanager.com/ebook-risk-based-incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><b>“How to Take a Risk-Based Approach to Incident Management,”</b></a> for more information on how to resolve issues and engage the right people in the right amount of time.</p>
<p><strong>About the Author: Steven Minsky</strong></p>
<p>Steven is a recognized thought leader in ERM, CEO of LogicManager, and co-author of the RIMS Risk Maturity Model. Follow him on Twitter at @SteveMinsky</p>
</div>
<p><em>This article was originally published on <a href="http://LogicManager.com/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759">What Can Banks and All Companies Learn from Apple’s Latest Glitch?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Continued help by insurers in Fort McMurray Alberta</title>
		<link>https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746</link>
				<comments>https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746#respond</comments>
				<pubDate>Fri, 15 Feb 2019 16:11:57 +0000</pubDate>
		<dc:creator><![CDATA[Steve Kee]]></dc:creator>
				<category><![CDATA[Catastrophe]]></category>
		<category><![CDATA[Home]]></category>
		<category><![CDATA[Natural Disasters]]></category>
		<category><![CDATA[Property Restoration]]></category>
		<category><![CDATA[Alberta]]></category>
		<category><![CDATA[Fort McMurray wildfire]]></category>
		<category><![CDATA[home insurance]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8746</guid>
				<description><![CDATA[<p>Insurance Bureau of Canada attempted to respond to a recent piece on the Fort McMurray Alberta rebuild following the fire in 2016. The magazine has not printed the response. The following is IBC’s position. The recent article by Nicholas Köhler<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746">Continued help by insurers in Fort McMurray Alberta</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="wp-image-8753 size-medium alignright" src="https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-768x512.jpg 768w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1.jpg 800w" sizes="(max-width: 300px) 100vw, 300px" /></p>
<p>Insurance Bureau of Canada attempted to respond to a recent piece on the Fort McMurray Alberta rebuild following the fire in 2016. The magazine has not printed the response. The following is IBC’s position.</p>
<p>The recent article by <a href="https://www.macleans.ca/news/canada/fort-mcmurray-fire-insurance-two-years-later/">Nicholas Köhler on the Fort McMurray rebuild (Maclean’s, January 23, 2019)</a> doesn’t provide a full picture of the extensive work that has taken place in Fort McMurray since the 2016 wildfire. The devastating fires that swept through the community forced the largest wildfire evacuation in Alberta’s history. Close to 90,000 people were forced to flee their homes. This was a traumatic situation for Fort McMurray residents, and insurers acted immediately the moment the fire started.</p>
<p>Residents, governments, emergency officials, non-profits and insurers have all done an incredible amount of work to get the community back on its feet. However, while almost all insurance claims are closed and most residents are back into their homes, the work is not yet done. <a href="http://www.ibc.ca/ab/">Insurance Bureau of Canada (IBC)</a> understands that there are some families still working through claims with their insurers. This is never the preferred situation.</p>
<p>Policyholders with outstanding issues are encouraged to call IBC’s Consumer Information Centre at 1-844-2ask-IBC or the <a href="https://www.alberta.ca/insurance.aspx">Alberta Superintendent of Insurance</a> at 780-643-2237 for information about the dispute resolution process and other tools that may be available to them. The insurance industry will continue to assist residents until 100% of the claims are closed and families are back in their homes. We are here to help.</p>
<p>Sincerely,</p>
<p><a href="http://www.ibc.ca/nt/about-us/leadership/vp-western">Celyeste Power</a><br />
Vice-President, Western<br />
Insurance Bureau of Canada</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746">Continued help by insurers in Fort McMurray Alberta</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>What’s Happening With B.C. Auto Insurance?</title>
		<link>https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727</link>
				<comments>https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727#respond</comments>
				<pubDate>Sun, 20 Jan 2019 16:35:00 +0000</pubDate>
		<dc:creator><![CDATA[Willie Handler]]></dc:creator>
				<category><![CDATA[Auto]]></category>

		<guid isPermaLink="false">http://www.insblogs.com/?guid=2f02e7655a35fac645abfefb11ec591a</guid>
				<description><![CDATA[<p>Some of my Ontario readers might be wondering what is happening in B.C. and their auto insurance reforms.When the NDP government was formed, they inherited quite a mess. Auti insuracne costs were rising rapidly and rates increases had not kept up. The ...</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727">What’s Happening With B.C. Auto Insurance?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8730 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252.jpg 724w" sizes="(max-width: 300px) 100vw, 300px" />Some of my Ontario readers might be wondering what is happening in B.C. and their auto insurance reforms.</p>
<p>When the NDP government was formed, they inherited quite a mess. Auto insurance costs were rising rapidly and rates increases had not kept up. The previous government had also drained the public insurer, the Insurance Corporation of British Columbia (ICBC), of surplus funds from previous years. As a result, the ICBC was running losses in excess of $1 billion.</p>
<p>The average premium in B.C. is now about $200 more than those in Ontario. Yes, it’s hard to believe that there could be a mess worse than Ontario. The ICBC has been unfairly painted the villain. The private insurance industry is trying to use B.C. as an example of how government-run insurance doesn’t work. That’s just not true. In this case, competition could not possibly resolve the province’s insurance problems.</p>
<p>British Columbia is the only jurisdiction that still has a full tort system. In other words, their system is much like Ontario’s back in the 1980s with growing settlements and high legal costs.. The ICBC and B.C. government have determined that tort access needs to be restricted.</p>
<p>Beginning April 1 of this year, there will be a minor injury cap of $5,500 for pain and suffering awards in B.C., similar to what a number of other Canadian jurisdiction have done. At the same time, no-fault accident benefit coverage will be expanded. B.C. is also updating how it calculates rates by providing discounts to safe drivers and penalizing those who cause accidents. A change that is long overdue.</p>
<p>The ICBC expects to save about $1 billion dollars from these reforms. It will interesting to see if their no-fault model will work. If it doesn’t, the next step may be to eliminate tort altogether and design a pure-no-fault system.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727">What’s Happening With B.C. Auto Insurance?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></content:encoded>
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		<title>Flexible Risk Assessments and Effective Reporting in the Banking Industry</title>
		<link>https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826</link>
				<comments>https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826#respond</comments>
				<pubDate>Mon, 22 Apr 2019 19:16:23 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Business Risks]]></category>
		<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8826</guid>
				<description><![CDATA[<p>The banking industry is perceived as the most advanced in their understanding and implementation of risk management. Although banks have indeed made huge progress in risk management, two areas all banks can improve is the structure used in conducting their<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826">Flexible Risk Assessments and Effective Reporting in the Banking Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box nonhundred-percent-fullwidth non-hundred-percent-height-scrolling">
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<p><img class="size-medium wp-image-8827 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />The banking industry is perceived as the most advanced in their understanding and implementation of risk management. Although banks have indeed made huge progress in risk management, two areas all banks can improve is the structure used in conducting their assessments to enable actionable and insightful strategic reporting.</p>
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<p>I’ve found that the understanding and implementation of risk management is driven not by industry or size of institution, but rather by its people: boards, executives, their teams and front-line managers keeping their organizations on track to achieve their goals and preventing missteps and scandals in the fast-paced age of the See-Through Economy.</p>
<p>In an effort to give these two groups some insight into how they can accomplish this, I presented at two conferences for risk managers in the financial industry on new best practices and emerging trends. At the <a href="https://www.aba.com/Training/Conferences/Pages/riskmanagement.aspx">American Banking Association’s 2019 Risk Management Conference</a> in Austin, TX, I presented on how attendees could get more out of cross-functional risk assessments. A short day later, I dove into effective board reporting at the <a href="https://landing.rmahq.org/gcorxiii">Risk Management Association’s GCOR XIII Conference</a> in Cambridge, MA.</p>
<p>In this blog, I’ll recap some of the highlights of these two important, intimately related topics. I’ll also pass along the tools I showed to each session’s attendees to give you a head start on implementing these tips for <a href="https://www.logicmanager.com/erm-software/operational-risk-management-software/banks/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">risk management in the banking industry</a>.</p>
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<h3>Goals and Challenges in the Banking Industry</h3>
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<div class="fusion-sep-clear">Attendees of ABA and GCOR alike have similar goals and challenges in the financial industry. So first, what are these goals? Protect your bank by identifying, mitigating, and monitoring risks before they manifest and identify new opportunities and capital efficiency.</div>
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<p>What’s the challenge? Today, there’s a lot to protect your bank from – data breaches, reputational damage, non-compliance, a recession, and so much more. So the challenge, in a word, is complexity.</p>
<p>To paint a small picture of this complexity, think about the main regulatory body your bank has to align with and how many different risk categories they define. What I’ve seen time and time again is banks trying to put together different risk assessments to match up with all these different categories – the FFIEC’s 6 risk categories, the OCC’s 9 risk categories, etc.</p>
<p>The problem with this approach is if you take one of these categories, say Reputation Risk, and try to ask someone in IT to fill out a risk assessment on this category, they won’t know where to begin. They can only speak to what they know, and most IT professionals haven’t made the connection between what they know and reputation risk.</p>
<p>A better approach is to attract as many as you can with honey. The honey in this case is cross-functional risk assessments.</p>
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<h3>Get More out of Cross-Functional Risk Assessments</h3>
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<p>With cross-functional risk assessments, you’ll be able to gather, re-aggregate, and report on all the information you need to protect your business from a myriad of risks.</p>
<p>First, my presentation is summarized in our eBook <a href="https://www.logicmanager.com/download-better-risk-assessments-financial-ebook/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">“5 Steps for Better Risk Assessments: A Special Edition for the Financial Industry,”</a> so feel free to download a free copy for an in-depth recap.</p>
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<p>For the purposes of this blog, however, I’d like to reiterate three things:</p>
<p><strong>1) The key to cross-functional risk assessments is taking a multi-disciplinary approach.</strong> Risk management is in every employee’s job title, whether they know it not. Having their engagement in the risk assessment process is crucial to achieving an attract-with-honey effect. <a href="https://www.logicmanager.com/download-risk-based-approach-wheel/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Download the Risk-Based Approach Wheel I showed ABA attendees here.</a> Use it to connect with other professionals in your organization like Audit or Compliance by starting with their priorities and working your way around the risk management cycle from their most preferred starting point<u>!</u></p>
<p><strong>2) Rethink your risk assessment categories.</strong> Instead of creating risk assessments with categories that align specifically with FFIEC or OCC categories, use standards in scoring, naming conventions, and risk libraries to organize them by key departments, key products and services, and key regulations. This way, you’re talking to people about what they know best and getting the most accurate information with the accountability for those risks attached.</p>
<p><strong>3) Re-aggregate risk assessment information to align with big regulator risk categories and more</strong>. With a <a href="https://www.logicmanager.com/erm-software/product/risk-taxonomy/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">taxonomy</a> in place, and by using the standards from #2 above, you can categorize one risk in multiple ways. Let’s say the Marketing Manager identifies someone hacking into the website as a risk. This would be simultaneously categorized as a marketing risk, an external risk, and a reputation risk (one of the OCC’s main categories).</p>
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<h3>The Why, How, and What of Effective Board Reports</h3>
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<p>Item number three above has everything to do with developing a flexible reporting structure. With such a structure, you can take any piece of information you’ve gathered from across the enterprise and dig into it in a multitude of ways. This requires an interrelated and standardized structured approach called a “taxonomy”.</p>
<p>Above we talked about how aligning with the main regulatory bodies adds complexity to managing risk in the financial industry. Another faction of this complexity is aligning with strategic goals set by the board. So, not only are risk managers juggling hundreds of regulations, they also have the board and others calling on them for evidence that their ERM program is effectively supporting the goals they set for the company.</p>
<p>Risk managers may not at first realize the massive amounts of information already on hand throughout their bank covering all areas of the organization down to the front lines. Without standards and taxonomy to link and relate all the connections across that information, it can be very challenging to portray how operational activities also align with the business’s greater strategic goals. Historically, boards of directors and senior leadership have struggled to engage with risk managers because information is typically not collected and distilled in the most effective way. The boards want to see the bottom line: how risk management is supporting their strategic objectives.</p>
<p>I’d like to give you a few tips on how you can overcome this challenge and paint the big picture for the board, while distilling this information into a digestible yet insightful format.</p>
<p>First, the taxonomy I describe above is a great tool for aggregating risk in many different ways. With a flexible categorization structure in place, you can pull reports on risks tied to different departments, products, regulations, or even strategic goals. The board wants concise deliverables providing evidence that the appropriate risk management controls are in place and that they are effective over the risks they are designed to mitigate. They also want to know that these risks are monitored, so that they won’t be the next name in the headlines.</p>
<div class="fusion-text">
<p>Another tip to keep in mind, is to collect information in a way that enables your reports to be flexible. Compiling enterprise-wide risk into <a href="https://www.logicmanager.com/erm-software/product/dashboard-reports/">strategic dashboards</a>gives the board a comprehensive look at the “why” of an aggregated view of risk and its implications, and also provides the flexibility to drill into individual risks all the way out to the front-business lines where the risks are known. They are strategic in that the information in the dashboard can be dynamic but the presentation framework remains the same so that board members can quickly zoom in on the insights they need without needing to interpret the structure of how the data was gathered or changing the presentation style that is being used. The board doesn’t need to be overwhelmed with all of the risks at the business activity level, but it is best to have the option to dig deeper and re-aggregate information within the report.</p>
<p>Once the board has a clear view of their organization’s risk, they can rest assured that your risk management program has their strategic organizational goals in mind. As a result, the board will continue to provide the necessary support for your program.</p>
<div class="fusion-text">
<p>It was an honor presenting at the ABA and RMA GCOR XIII Conferences, where I got to share and learn from risk professionals in one of the most advanced industries in the risk management fields. I hope attendees, and new readers, found these tips and tools useful!</p>
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<p><strong><em>This article was originally published on <a href="https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></strong></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826">Flexible Risk Assessments and Effective Reporting in the Banking Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Ontario Government Takes a Different Approach to Auto Insurance Reforms</title>
		<link>https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813</link>
				<comments>https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813#respond</comments>
				<pubDate>Fri, 12 Apr 2019 14:02:00 +0000</pubDate>
		<dc:creator><![CDATA[Willie Handler]]></dc:creator>
				<category><![CDATA[Auto]]></category>

		<guid isPermaLink="false">http://www.insblogs.com/?guid=e0f5021f85e69380d0289f5b5d45ffac</guid>
				<description><![CDATA[<p>The 2019 Ontario Budget is out and there's some positive news for auto insurance consumers.Finally, a government in Ontario takes a slightly different approach to repairing a damaged auto insurance product. For too long, the focus has been largely on n...</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813">Ontario Government Takes a Different Approach to Auto Insurance Reforms</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8815 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-300x201.jpg" alt="" width="300" height="201" srcset="https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-300x201.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-598x400.jpg 598w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560.jpg 723w" sizes="(max-width: 300px) 100vw, 300px" />The 2019 Ontario Budget is out and there’s some positive news for auto insurance consumers.</p>
<p>Finally, a government in Ontario takes a slightly different approach to repairing a damaged auto insurance product. For too long, the focus has been largely on no-fault accident benefits and ignoring virtually every other aspect of the product. The result has been a complex system that has not kept up with our changing society.</p>
<p>Here is what the 2019 Ontario Budget has to say about auto insurance:</p>
<p><b>1. Lowering Costs and Fighting Fraud</b></p>
<p>Fighting fraud is a common theme for every government. The current government is looking for FSRA to overhaul the licensing system for service providers to reduce regulatory burden and fraud, including treatment fees. I’m not impressed with the existing licensing system. When I worked on it in the early part of the decade, I had intended on it to truly focus on identifying fraudulent operators. It would have only licensed the largest billing facilities. Instead, the government just designed a broad licensing system. Hopefully, someone will look back at the original intent. Streamlining the system will also reduce costs.</p>
<p>The government has indicated that they would like to see contingency fee agreements become more transparent and review the effectiveness of contingency fees. Sounds like a good idea.</p>
<p>The government has also signalled a desire to establish a Serious Fraud Office. This is an idea that has been bounced around for years now. My view is that it is the insurance industry that has to take the lead on fraud as is the case with other industries.</p>
<p>The government also is pushing the idea of more e-commerce. That would mean more electronic communications when purchasing insurance and making claims. The Budget specifically mentions electronic proof of insurance, something <a href="http://williehandler.blogspot.com/2013/05/electronic-proof.html">I advocated for 6 years ago</a>.</p>
<p><b>2. Increasing Accessibility and Affordability</b></p>
<p>This is a common theme when a government talks about auto insurance. How to achieve it is the trick. The Budget leaves the door open to basing rates on credit scoring and preferred providers for vehicle repairs and health care services. I don’t see credit scores and providing more accessibility or affordability. It will have the opposite affect on low income families. Insurers will gladly swap territorial rating for credit score rating.</p>
<p>The government is also planning to simplify insurance forms, policies and other insurance documents. I’m all for that!</p>
<p><b>3. Adopting the Driver Car Plan</b></p>
<p>This is the most intriguing part of the Budget announcement for me. It talks about a Driver Care Card, which would streamline access to care. I have no idea what this would look like. It does relate to the long awaited programs of care.</p>
<p>I initiated the Programs of Care project before I left FSCO in 2011 and agree with its introduction. Led by Dr. Pierre Côté, the work on developing programs of care was completed in three years. Long overdue, this aspect of the Marshall recommendations and subsequent government announcement has been in development for six years.</p>
<p>Programs of care were first developed by the Workplace Safety and Insurance Board (WSIB) to deal with low back pain. The initial whiplash associated disorder guidelines were created in 2003 based on the WSIB low back pain program of care. FSCO had undertaken to develop programs of care for a range of soft tissue injuries. An interim solution was the introduction of the minor injury definition and minor injury guideline in 2010. The expectation is that programs of care will simplify access to treatment and reduce disputes in the system. If that does occur, it will potentially reduce some of the transactional costs in the system.</p>
<p>Finally, the no-fault accident benefits cap on medical, rehabilitation and attendant care benefits for those catastrophically injured will be restored to $2 million. The cap was reduced to $1 million in 2016 by the previous government and was one of the worst changes they made. I’m for controlling costs for those with minor injuries but those with the most serious injuries need to be properly covered.</p>
<p><b> 4. Increasing Competition</b></p>
<p>Increasing competition really means breaking the existing mold where everyone has the same type of auto insurance product. Driving behaviour, usage and technology have all changed. The product needs to reflect that. So I agree, lets see some innovative products. As long as the regulator ensures consumers are adequately protected.</p>
<p>Again, the government is looking to FSRA to achieve these changes. What can we expect to see? Things like pay-as-you-go insurance. Great for people who don’t drive much. Perhaps more telematics. A simplified rate approval process. Streamlining the SABS, something I’ve been advocating for, for years. Higher limits for small claims court.</p>
<p>This is an ambitious agenda and a break from previous reform initiatives. Can’t wait to see how this plays out.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813">Ontario Government Takes a Different Approach to Auto Insurance Reforms</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>P&C Brokerage Industry – Let’s talk Management Buy-ins</title>
		<link>https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803</link>
				<comments>https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803#respond</comments>
				<pubDate>Mon, 01 Apr 2019 17:54:35 +0000</pubDate>
		<dc:creator><![CDATA[Mike Berris]]></dc:creator>
				<category><![CDATA[Business Risks]]></category>
		<category><![CDATA[Business Strategy]]></category>
		<category><![CDATA[Earnings / Ratings]]></category>
		<category><![CDATA[Enterprise Risk Management]]></category>
		<category><![CDATA[Insurance Linked Securities]]></category>
		<category><![CDATA[Markets / Coverages]]></category>
		<category><![CDATA[brokerage coverage]]></category>
		<category><![CDATA[management buy-ins]]></category>
		<category><![CDATA[mike berris]]></category>
		<category><![CDATA[p&c insurance]]></category>
		<category><![CDATA[smythe advisory]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8803</guid>
				<description><![CDATA[<p>Let me start by saying that some of the best managed and most profitable brokerages in Canada are employee-owned. We believe that every succession planning process should, at the very least, consider this option. When talking about management buy-ins, a<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803">P&C Brokerage Industry – Let’s talk Management Buy-ins</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<p>Let me start by saying that some of the best managed and most profitable brokerages in Canada are employee-owned. We believe that every succession planning process should, at the very least, consider this option.</p>
<p><img class="alignnone size-large wp-image-4130" src="https://www.smytheadvisory.com/wp-content/uploads/2019/03/management-buy-ins-1024x614.jpg" alt="Management Buy-ins" width="1024" height="614" /></p>
<p>When talking about management buy-ins, a good place to start is to understand the reasons why we don’t see more of them. Keep in mind, some of these reasons are sometimes more perception than reality. Here are a few examples:</p>
<ul>
<li><strong>Lack of Bench Strength</strong> – your organization does not have the talented young people who have the drive and ability to run your business</li>
<li><strong>Finances</strong> – employees don’t have the financial strength to commit capital to do the deal</li>
<li><strong>Financing</strong> – the organization does not generate enough cash flow to support the debt servicing costs given current valuations</li>
<li><strong>Too Complicated</strong> – it is easier to continue to operate and then monetize through a full divestiture</li>
<li><strong>Control</strong> – while you own the business, you want full control</li>
</ul>
<p>Of course, all these issues are real and, in many cases, good reasons for not under-taking a management buy-in. Having said that, I think management buy-ins make sense in certain situations and they are often overlooked because the brokerage owner either doesn’t know this might be a viable option or, they don’t know how to proceed.</p>
<p>Let’s look at some fundamentals of a good plan. First, there must be a process from which to evaluate what is best for you, your family, the organization and then the potential investors. While each situation is different, we typically suggest the following:</p>
<ul>
<li>With the help of family, and or a trusted advisor, come up with some specific financial outcome goals. It might be as simple as I think my brokerage is worth $5 million. I would like to monetize $2 million now with the balance greater than $5 million in seven years;</li>
<li>Complete a deep dive of the business. The resulting document describes the composition of the business from an underlying book and financial perspective, lays out the possible market valuation, cash flow available for debt service and areas of possible value enhancement. This will be needed for both investors and potential financing sources.</li>
<li>The deep dive help focus on the type of investor that is best suited for you and your brokerage. It might be current employees, outside producers, an insurance company or even an executive that is currently working at an insurance company.</li>
<li>Prepare a detailed step-by-step plan of all the structural issues that must be addressed, including income tax, legal structure, governance and potential financial structure.</li>
<li>Execute the plan.</li>
</ul>
<p>Proper planning and preparation are the key to success. There is little point in inviting employees or outside investors in the process unless they are going to add value. It is a far better approach to advertise for exactly who you’re looking for. There will be a lot of interest if they see a possible return.</p>
<p>The same goes for governance. You need to protect your investment and exercise ultimate control. At the same time, the investment must be meaningful to your new partners. A strong governance model supported by a well-crafted shareholder agreement is critical. The agreement needs to address those issues that require unanimous shareholder consent, under what conditions shareholders can obtain more or divest in shares and how they will be valued. There are a number of great lawyers who both understand the P&C sector and know how do craft effective agreements.</p>
<p>There are two issues that generally take some finesse. In the case of employee investors, it is getting them to commit some personal capital. For younger people, they generally don’t have any capital. But if they do, then it is paramount that they have at least something at risk. While you can work around this, I struggle to justify why a Brokerage Owner should commit to a plan to transfer ownership without some immediate commitment by the investor.</p>
<p>The second issue is financing the transaction. The financing approach depends on the circumstances. Banks, insurance companies and private investors each have unique advantages and potential challenges. Your chosen plan will play an important role in what type of financing you look for.</p>
<p>Management buy-ins should be part of an overall plan that leads to the eventual transition of ownership. Yes, there are complicated financial and emotional considerations. But, with a well-designed tax and financial strategy you can protect your family’s financial future, reduce the organizations dependence on you and ultimately increase the overall valuation of the business.</p>
<p>If you have any questions or comments, please send them to <a href="https://www.smytheadvisory.com/about/professionals/mike-berris/"><strong>Mike Berris</strong></a> at <a href="mailto:mberris@smythecpa.com"><strong>mberris@smythecpa.com</strong></a>.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803">P&C Brokerage Industry – Let’s talk Management Buy-ins</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</title>
		<link>https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790</link>
				<comments>https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790#respond</comments>
				<pubDate>Tue, 19 Mar 2019 17:51:05 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8790</guid>
				<description><![CDATA[<p>Cybersecurity vulnerabilities are an increasing concern for every company in every industry. Year over year, data breaches increase by 75%. Why are they becoming more prevalent, and how can you protect your business? Before you can protect your company from<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790">Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><a href="https://storage.ning.com/topology/rest/1.0/file/get/1501598821?profile=original" target="_blank" rel="noopener"><img class="align-right alignright" src="https://storage.ning.com/topology/rest/1.0/file/get/1501598821?profile=RESIZE_710x" width="350" /></a>Cybersecurity vulnerabilities are an increasing concern for every company in every industry. Year over year, data breaches increase by 75%. Why are they becoming more prevalent, and how can you protect your business?</p>
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<p>Before you can protect your company from a data breach, you have to understand why they’re occurring. So let’s look at some statistics:</p>
<ul>
<li><a href="https://www.verizondigitalmedia.com/blog/2017/07/2017-verizon-data-breach-investigations-report/" target="_blank" rel="nofollow noopener"><strong>81%</strong></a> of hacking-related breaches leveraged either stolen and/or weak passwords</li>
<li><a href="https://www.verizondigitalmedia.com/blog/2017/07/2017-verizon-data-breach-investigations-report/" target="_blank" rel="nofollow noopener"><strong>70%</strong></a> of employees reuse passwords at work</li>
<li>Ransomware is the top variety of malicious software, found in <a href="https://www.verizonenterprise.com/resources/reports/rp_DBIR_2018_Report_execsummary_en_xg.pdf" target="_blank" rel="nofollow noopener"><strong>39%</strong></a> of cases where malware was identified</li>
<li><a href="https://www.businesswire.com/news/home/20181115005665/en/Opus-Ponemon-Institute-Announce-Results-2018-Third-Party" target="_blank" rel="nofollow noopener"><strong>59%</strong></a> of companies experienced a data breach caused by a third party</li>
</ul>
<p>These stats start to give us an idea of the true root cause of cybersecurity risk. Yes, there are bad actors involved, but data breaches also have everything to do with governance.</p>
<p>Realizing the connection between good governance and cybersecurity is in itself a huge benefit to an organization. Not only do data breaches hold financial and intellectual property concerns, they also have the potential to impact a company’s reputation.</p>
<p>Because of <a href="https://www.logicmanager.com/download-see-through-economy-infographic/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">the See-Through Economy</a>, consumers are more aware of data breaches than ever before, they’ve cried out for better protection, and regulators have taken steps towards providing it for them. More opportunities to be hit with regulatory lawsuits mean more chances for a company’s brand to suffer.</p>
<p>The good news is, the leading causes of cyber breaches – weak passwords, ransomware, and third parties – can be entirely mitigated with good governance.</p>
<p> </p>
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<h3 class="title-heading-left"><strong>Cybersecurity Risks Are a Governance Problem</strong></h3>
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<div class="fusion-clearfix">There a few common misconceptions about cybersecurity. For one, many people believe breaches occur because of insufficient technology, but extensive spending on specific cybersecurity solutions has created more gaps than it’s closed. In reality, most cybersecurity issues are governance problems.</div>
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<p>For another, many organizations react by conducting employee training. Training increases awareness but is proven ineffective at changing behavior.</p>
<p>Reducing the risk of a cyber attack is no different from reducing any risk; it begins with identification. Specifically, <a href="https://www.logicmanager.com/erm-software/knowledge-center/best-practice-articles/risk-identification/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">root-cause risk identification</a>, as we’ve started to do with the bullets above.</p>
<p>If 81% of hacking-related data breaches leveraged weak passwords, then expensive point-of-sale solutions or artificial intelligence won’t work.</p>
<p>Additionally, trained employees rarely make an effort to change weak/reused passwords, and the problem lingers. In fact, a <strong><a href="https://blog.lastpass.com/2018/05/psychology-of-passwords-neglect-is-helping-hackers-win.html/" target="_blank" rel="nofollow noopener">survey by </a></strong>LastPass of LogMeIn, a password management tool, found that although 91% of the employees claim to understand the risks of using the same passwords across multiple accounts, 59% said they did so anyway.</p>
<p>Moreover, if over half of data breaches that occur stem from third-parties, what good will more training with employees or more expensive point solutions do?</p>
<p>Chances are, you already have many solid security policies and advanced technology in place. The next step is to implement good governance over them to make sure they’re actually protecting your company.</p>
<p>So how is good governance achieved?</p>
<p> </p>
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<h3 class="title-heading-left"><strong>Improve Cybersecurity with Good Governance</strong></h3>
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<p>Good governance doesn’t happen overnight. It takes a village. A huge misperception people have is that cybersecurity is the IT department’s responsibility. But actually, every department plays a key role. The first step to good governance, then, is realizing what piece of the puzzle each department holds. Consider the following:</p>
<ul>
<li>IT Security – Does not have the complete asset list, meaning it cannot identify all login practices or monitor password quality or access rights</li>
<li>Finance – Knows assets and process owner allocation, but has no method/system for sharing that information with the right parties</li>
<li>Third-Party Management – Has no system for managing authorized assets or sharing information or enforcement of controls</li>
<li>Legal – Has authority, but lacks any control implementation or monitoring</li>
<li>HR – Has no way of notifying application administrators of user entitlement changes</li>
<li>Audit – Has access to an entitlement policy, but doesn’t have a user access list mapped to specific assets</li>
</ul>
<p>The problems detailed above persist as long as departments are unable to communicate effectively. The information they need does exist; it’s a simple matter of finding out how to access and coordinate that information.</p>
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<p>A written password, asset, or access policy will not lead to realized benefits unless these limitations can be overcome. It’s not the existence of the policy itself that improves security; it’s the implementation, or operationalization, of that policy. This is why preventing breaches starts with governance, not technology. The crucial success factor is engaging each business area.</p>
<p> </p>
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<h3 class="title-heading-left"><strong>Actively Engage Different Departments in Cybersecurity</strong></h3>
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<p><b>Step 1: Compose and Approve the Policy Itself</b></p>
<p>This step is already performed by the vast majority of organizations. The board or executive leadership decides to mitigate the threat posed by employees’ weak passwords, access rights, and asset lists. It enlists the help of the security department to validate the implementation of these policies.</p>
<p><b>Step 2: Grant the Security Department the Visibility it Needs</b></p>
<p>Here is where most organizations falter. They have a policy, but they can’t implement it or are unsure if all vulnerabilities are covered. The failure to operationalize is therefore a governance problem — an inability to coordinate activities and responsibilities across business silos. Senior leadership leaves it to security to ensure the company is adhering to the new policy because, after all, security has the most subject-matter expertise, right?</p>
<p>In reality, security can only handle certain parts of the policy. A current LogicManager customer reported its prior inability to implement such a policy. They told us, “We’ve been in deadlock for three years. We have a policy drafted, but security has said it only has actionable control over certain parts, and so nothing moves forward.”</p>
<p>LogicManager was able to help for a very simple reason: governance platforms provide a centralized information hub, plus the ability to:</p>
<ol>
<li>Break up roles and responsibilities</li>
<li>Assign those roles to appropriate stakeholders</li>
<li>Create <a href="https://www.logicmanager.com/erm-software/product/tasks-documents/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">automated tasks</a> to monitor the activity and ensure password/access policies are adhered to by <i>all </i>stakeholders</li>
</ol>
<p><b>Step 3. Carry Good Governance Out to Third Parties</b></p>
<p>Since 59% of data breaches stem from a company’s third parties, it’s not enough to shore up internal security, password, and access rights policies. You need to make sure your vendors are taking as many precautions with your data as you are.</p>
<p>How many applications does your company rely on? How many third parties have access to sensitive information? Which employees have access to which? How much access does each employee need to get their job done?</p>
<p>Enterprise risk management platforms can help answer these questions, as the best of them can help you govern your <a href="https://www.logicmanager.com/erm-software/plugins/software-asset-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">software asset management</a> and user <strong><a href="https://www.logicmanager.com/erm-software/plugins/user-access-review-template/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">access reviews.</a></strong></p>
<p>Again, IT isn’t solely responsible for keeping track of these vendors. Every organization’s finance department maintains a “master asset list” of all applications, since they approve the budgets and execute purchase orders for every application.</p>
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<p>Think about your payment systems, payroll system, customer relationship management, vendor management, and other third-party software applications. Once finance provides the list of assets and which departments own them, security simply reaches out to each process owner to operationalize the policy.</p>
<p><b>Step 4: Hold Each Party Accountable for its Piece</b></p>
<p>When security is isolated, they cannot operationalize the policy, and it’s paralyzed. But after security has access to information about which managers use which applications, it’s a simple matter of using the ERM system to push out <a href="https://www.logicmanager.com/erm-software/product/tasks-documents/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">tasks/notifications</a> and track the results.</p>
<p>Each process owner receives an automatic task within the platform, which includes background on the policy as well as what is required of the individual manager. Since it’s functional managers, not the security department, that know which employees should have access rights, it’s easiest to get this information by pushing the requirements and questions down to the front lines.</p>
<p>After process owners handle their own pieces of the policy, they send their information back to the security department, where it can be monitored. The same process can then occur with vendor management; which vendors have access to password-protected applications, and how should their contracts be updated to reflect proper enforcement of the policy? Enforcement is then managed through contract terms and audit capabilities (based on <strong><a href="https://www.logicmanager.com/erm-software/product/assess/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">risk assessment</a></strong> priorities).</p>
<p>So consider how achieving good governance can help you eliminate the vast majority of your cybersecurity risk by operationalizing the policies you already have in place across departments and out to third parties.</p>
<p>With the right <strong><a href="https://www.logicmanager.com/erm-software/product/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">governance solution</a></strong>, you should be able to operationalize any one of your policies within 90 days. If you operationalize your password policy across the enterprise, you’ve eliminated 81% of your cybersecurity risk.</p>
<p><em>This article was originally posted on <a href="https://www.logicmanager.com/erm-software/2019/03/28/eliminate-cybersecurity-vulnerabilities/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790">Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>How can insurers stay relevant when insurance ceases to be mandatory?</title>
		<link>https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795</link>
				<comments>https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795#respond</comments>
				<pubDate>Tue, 19 Mar 2019 17:36:18 +0000</pubDate>
		<dc:creator><![CDATA[Christian Bieck]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>
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				<description><![CDATA[<p>Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of […]</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795">How can insurers stay relevant when insurance ceases to be mandatory?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8797 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956.jpg 724w" sizes="(max-width: 300px) 100vw, 300px" />Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of insurance customers.</p>
<p>But those barriers are starting to crumble. Autonomous cars, for example, might be a future vision. But nowadays, technology visions tend to become reality sooner than we thought; and when this one does, insurers will lose one of their biggest entry points into young customers’ wallets—auto insurance. With sufficient technical sophistication in self-driving systems and once a certain threshold of these cars is reached, legislators in most countries will consider banning human drivers. That will transform auto from a personal line to a commercial, fleet-based line, as it suddenly becomes more feasible to not own, but to share, a car. And the entity at fault becomes the software “behind the wheel,” not the passenger, anyway.</p>
<p>When that happens—which means when insurance stops being a mandatory requirement—how do insurers stay relevant to their customers? That is a question we explore in our latest <strong><a href="https://ibm.co/2FDVMu8" rel="noopener">IBM Institute for Business Value study, “Solving the customer relevance riddle: How AI-derived insights can help insurers deliver what customers really want”</a>.</strong></p>
<p>Already we are seeing non-traditional players carving out niches in the industry, <a href="https://www.ibm.com/thought-leadership/institute-business-value/report/insurtech">such as insurtechs</a>, adjacent businesses and digital giants. For insurers to thrive in this “big squeeze,” they need to reframe their roles to generate better business outcomes using customer segmentation and improved risk profiling. More importantly, they need to generate better customer outcomes with more individual tailoring and personalized communications, improved transparency and holistic solutions that actually meet customer needs.</p>
<p>How can insurers do this? The short answer is “by becoming a Cognitive Insurer.” That means shifting from “react and pay” to “predict and prevent.” The foundation for this is data—owned, bought or shared—the smart use of that data, and the associated technologies.</p>
<p>The technology that is likely to be the biggest differentiator in a Cognitive Insurer is artificial intelligence (AI). Insurers with a data-oriented mindset are heavily investing in AI, with more than 80% at least considering AI. Thirty-five percent of outperforming insurers are at least in the pilot stage with an AI project, with most insurers looking to bolster the top line with these projects—customer satisfaction being foremost on their minds.</p>
<p>Read more details, case studies and recommendations as to what steps to take to become a Cognitive Insurer in our latest study, <a href="https://ibm.co/2FDVMu8" rel="noopener"><strong>“Solving the customer relevance riddle: How AI-derived insights can help insurers deliver what customers really want.”</strong></a></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795">How can insurers stay relevant when insurance ceases to be mandatory?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>A brief primer on government disaster assistance in Canada</title>
		<link>https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772</link>
				<comments>https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772#respond</comments>
				<pubDate>Tue, 12 Mar 2019 20:37:25 +0000</pubDate>
		<dc:creator><![CDATA[Glenn McGillivray]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8772</guid>
				<description><![CDATA[<p>Nine provinces and one territory in the country have formal disaster assistance programs designed to help homeowners, renters, small business owners, not-for-profits and local governments recover after a loss event. Prince Edward Island, Yukon and Nunavut do not currently have<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772">A brief primer on government disaster assistance in Canada</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<div id="attachment_8773" style="width: 427px" class="wp-caption alignright"><img aria-describedby="caption-attachment-8773" class=" wp-image-8773" src="https://www.insblogs.com/wp-content/uploads/2019/03/Looking_downtown_from_Riverfront_Ave_Calgary_Flood_2013-300x199.jpg" alt="" width="417" height="248" /><p id="caption-attachment-8773" class="wp-caption-text">By Ryan L. C. Quan https://commons.wikimedia.org/w/index.php?curid=26873355</p></div>
<p class="p1">Nine provinces and one territory in the country have formal disaster assistance programs designed to help homeowners, renters, small business owners, not-for-profits and local governments recover after a loss event. Prince Edward Island, Yukon and Nunavut do not currently have formal programs and, thus, when they need access to funds as the result of a disaster, they retain a certain amount and apply for reimbursement for the rest using the formula outlined in the federal framework (see below).</p>
<p class="p1">While each provincial disaster assistance program has its own variations, the programs probably have more in common with each other – at least in principle – than not.</p>
<p class="p1">For the most part, provincial disaster assistance is intended to provide funding to those who suffered loss and damage from an event that is uninsurable (i.e. where private insurance is not reasonably or readily available). Some provinces use the term ‘uninsurable’ but leave out any further explanations, while others (like British Columbia) explicitly set out which hazards the program won’t cover (“Insurable damages in the private sector from<span class="Apple-converted-space">  </span>wildfires,<span class="Apple-converted-space">  </span>earthquakes , snow load, wind storms, sewer or sump pit back-up, water entry from above ground (including roofs, windows or other areas of the building), are NOT eligible for DFA.”)</p>
<p class="p1">Some provinces offer very specific lists of items they will cover, with only a few having no limits on replacement items (most will only cover basic or standard replacement models). For example, Manitoba offers coverage for:</p>
<p class="p1"><em>Homeowners:</em><span class="Apple-converted-space">  </span>Beds, essential furnishings, essential clothing and primary appliances (eg. furnaces, water heaters, fridges, stoves, computers and televisions).</p>
<p class="p1"><em>Business owners:</em> Supplies, essential work clothing and other necessities.</p>
<p class="p1"><em>Agricultural claims:</em> Livestock fencing, staged and stored crop and some field erosion. DFA may also help cover the cost of clean-up, repairs and temporary relocation.</p>
<p class="p1">Most programs offer very specific payout caps, while only a couple do not.</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td1" valign="top"></td>
<td class="td2" valign="top">
<p class="p1"><b>Coverage limits</b></p>
</td>
<td class="td3" valign="top">
<p class="p1"><b>Item limits</b></p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">British Columba</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $300,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Alberta</p>
</td>
<td class="td2" valign="top">
<p class="p1">No cap</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Saskatchewan</p>
</td>
<td class="td2" valign="top">
<p class="p1">95% of eligible damage to $240,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Manitoba</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $240,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Ontario</p>
</td>
<td class="td2" valign="top">
<p class="p1">90% of eligible damage to $250,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Quebec</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $150,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">New Brunswick</p>
</td>
<td class="td2" valign="top">
<p class="p1">100% of eligible damage to $120,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Nova Scotia</p>
</td>
<td class="td2" valign="top">
<p class="p1">100% of eligible damage to $80,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Prince Edward Island*</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Newfoundland & Labrador</p>
</td>
<td class="td2" valign="top">
<p class="p1">No cap</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Yukon</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Northwest Territories</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $100,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Nunavut</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
</tbody>
</table>
<p class="p3"><em><span class="s1">* </span>The PEI Emergency Measures Organization is currently working on formalizing a provincial framework which aligns with the other Atlantic Provinces.</em></p>
<p> </p>
<p class="p1">Virtually all provincial programs are very explicit about covering primary residences only (like Saskatchewan, Manitoba and Ontario).</p>
<p class="p1">Some programs require that local governments apply to their respective provincial government to get recognized for assistance before individuals can apply themselves (like Saskatchewan and Alberta), while others allow applications by anyone once the province declares an event to be eligible for assistance. British Columbia and New Brunswick are examples of two provinces that provide a running list of active eligible disasters on their respective disaster assistance web pages.</p>
<p class="p1">Here are links to the major provincial disaster assistance programs in Canada:</p>
<p class="p1"><a href="https://www2.gov.bc.ca/gov/content/safety/emergency-preparedness-response-recovery/emergency-response-and-recovery/disaster-financial-assistance" target="_blank" rel="noopener"><b>British Columbia – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="http://www.aema.alberta.ca/assistance-and-recovery-support" target="_blank" rel="noopener"><b>Alberta – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.saskatchewan.ca/residents/environment-public-health-and-safety/access-funding-through-the-provincial-disaster-assistance-program" target="_blank" rel="noopener"><b>Saskatchewan – Provincial Disaster Assistance Program (PDAP)</b></a></p>
<p class="p1"><a href="https://www.gov.mb.ca/emo/recover/home/dfa_home.html" target="_blank" rel="noopener"><b>Manitoba – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.ontario.ca/page/apply-disaster-recovery-assistance" target="_blank" rel="noopener"><b>Ontario – Disaster Recovery Assistance for Ontarians (DRAO)</b></a></p>
<p class="p1"><a href="https://www.securitepublique.gouv.qc.ca/en/civil-protection/financial-disaster-victims.html" target="_blank" rel="noopener"><b>Quebec – Financial Assistance For Disaster Victims</b></a></p>
<p class="p1"><a href="https://www2.gnb.ca/content/gnb/en/news/public_alerts/report_damages.html" target="_blank" rel="noopener"><b>New Brunswick – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://novascotia.ca/dma/emo/disaster_financial_assistance/program_limits.asp" target="_blank" rel="noopener"><b>Nova Scotia – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.gov.nl.ca/fes/emo/DFAPPolicyStatement.pdf" target="_blank" rel="noopener"><b>Newfoundland & Labrador – Disaster Financial Assistance Program (NL-DFAP)</b></a></p>
<p class="p1"><a href="https://www.maca.gov.nt.ca/en/services/disaster-financial-assistance" target="_blank" rel="noopener"><b>Northwest Territories – Disaster Financial Assistance</b></a></p>
<p> </p>
<p class="p1"><b>Federal Disaster Financial Assistance Arrangements (DFAAs)</b></p>
<p class="p1">The provision of federal disaster assistance seems to be where most people get confused about how disaster assistance works in Canada.</p>
<p class="p1">As noted on Public Safety Canada’s website, “In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements (DFAA), administered by Public Safety Canada.<span class="Apple-converted-space">  </span>When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provide the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.”</p>
<p class="p1">Federal disaster assistance is paid by the federal government to provinces and territories and not directly to individuals or non-governmental entities. One of the most common misconceptions is that individuals can apply directly to the federal government for assistance, but this is not the case.</p>
<p class="p1">DFAA work on a cost sharing basis and uses a formula. For the period January 1, 2019 to December 31, 2019, the formula is as follows:</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td4" valign="top">
<p class="p1"><b>Eligible provincial expense thresholds</b></p>
<p class="p1"><b>(per capita of population)</b></p>
</td>
<td class="td4" valign="top">
<p class="p1"><b>Government of Canada share</b></p>
<p class="p1"><b>(percentage)</b></p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">First $3.19</p>
</td>
<td class="td4" valign="top">
<p class="p1">0</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Next $6.39</p>
</td>
<td class="td4" valign="top">
<p class="p1">50</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Next $6.39</p>
</td>
<td class="td4" valign="top">
<p class="p1">75</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Remainder</p>
</td>
<td class="td4" valign="top">
<p class="p1">90</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p class="p1">Thus, the DFAAs work in a similar manner to reinsurance.</p>
<p class="p1">Public Safety Canada provides the following as an example of how the DFAAs would work for a disaster in a province with a population of 1 million where the total eligible expenses for responding to and recovering from a disaster are $20 million:</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td5" valign="top">
<p class="p1"><b>Eligible Expenditures</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>Provincial or Territorial Government</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>Government of Canada</b></p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">First $3.19 per capita (100% provincial/territorial)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,190,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">Nil</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Next $6.39 per capita (50%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,195,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,195,000</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Next $6.39 per capita (75%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$1,597,500</p>
</td>
<td class="td5" valign="top">
<p class="p1">$4,792,500</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Remainder (90%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$403,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,627,000</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1"><b>TOTAL</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>$8,385,500</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>$11,641,500</b></p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p class="p1"><b>Disaster assistance and overland flooding</b></p>
<p class="p1">As noted at the outset, provincial disaster assistance is intended to provide funding for uninsurable losses. As such, and because many hazards are insurable in Canada, the bulk of provincial and federal disaster assistance paid out historically has been for overland flood. But this, it appears, will change.</p>
<p class="p1">With the introduction of overland flood insurance in Canada in February 2015, and with several companies now offering the coverage, some provincial disaster assistance programs have made it clear that the writing is on the wall for the payment of disaster assistance for overland flood.</p>
<p class="p1">On the webpage for its disaster assistance program Alberta, for instance, notes that “Because the DRP [Disaster Recovery Program] provides assistance for damages that are considered uninsurable, overland flood insurance may soon impact eligibility for DRP assistance.”</p>
<p class="p1">Likewise, Saskatchewan notes that “…insurance providers recently started to offer policies that protect homeowners from overland flooding. The Government of Saskatchewan advises all property owners to obtain adequate coverage for their property.” The province has made available an Overland Flood Insurance fact sheet and advises property owners to contact their insurance company about flood coverage.</p>
<p class="p1">And in British Columbia, <a href="https://www2.gov.bc.ca/assets/gov/public-safety-and-emergency-services/emergency-preparedness-response-recovery/embc/dfa/residential_flood_insurance.pdf" target="_blank" rel="noopener">a letter was issued</a> by Emergency Management BC (EMBC) in May 2016 outlining the development of the burgeoning flood insurance market in Canada. The letter warns: “Over the next several years as additional insurance options roll out, EMBC will apply discretion in how it determines eligibility. For example, a homeowner or tenant would not be expected to amend their existing policy as soon as overland flood insurance becomes available. But, DFA may be denied if overland flood insurance was available on renewal and they chose not to purchase it.”</p>
<p class="p1">There is an intricate, often complicated relationship between the existence or availability of private insurance and the provision of provincial disaster assistance. This relationship has taken a few new twists with the introduction of overland flood insurance in the country. And, so, it is worth keeping on eye on how provincial disaster assistance programs deal with the proliferation of overland flood insurance products and how they decide what the impact will be on the provision of disaster assistance.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772">A brief primer on government disaster assistance in Canada</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>How to Tackle The Top Three Risks in the Energy Industry</title>
		<link>https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767</link>
				<comments>https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767#respond</comments>
				<pubDate>Fri, 08 Mar 2019 14:29:06 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8767</guid>
				<description><![CDATA[<p>For the first time, reputation risk, organizational culture, and cybersecurity have all landed among the top five risks in the energy industry. How can energy companies tackle all of these risks without wasting time and money on additional resources? This<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767">How to Tackle The Top Three Risks in the Energy Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><img class="size-medium wp-image-8768 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />For the first time, reputation risk, organizational culture, and cybersecurity have all landed among the top five risks in the energy industry. How can energy companies tackle all of these risks without wasting time and money on additional resources?</p>
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<p>This year at my <a href="https://www.irmi.com/conferences/energy-risk-insurance-conference"><strong>IRMI Energy Risk and Insurance Conference</strong></a> session, I showed attendees how they could tackle all three of these top-priority risks with enterprise risk management.</p>
<p>The key is adopting a truly integrated approach to risk management. The truth is, energy companies already collect much of the information they need to build a mature risk management program. More often than not, however, organizations fail to engage all departments and levels of the organization to share this information cross-functionally and to the right levels to make decisions.</p>
<p>During my session at 2019 IRMI ERIC, I walked attendees through, step-by-step, how their organizations can implement a risk-based approach to build a risk culture and cybersecurity program that mitigates reputational risks before they occur.</p>
<p>Whether you made it to this year’s conference or not, I wanted to share some of my takeaways from the session, as well as some tools I presented to facilitated a risk-based approach.</p>
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<h3>Emerging Risks in the Energy Industry</h3>
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<p>According to the report <strong><a href="https://www.protiviti.com/US-en/insights/protiviti-top-risks-survey">“Executive Perspectives on Top Risks 2019”</a></strong>, energy and utility companies rated organizational risk to have a ‘significant impact’ on operations in response to the following statement: “Our organization’s culture may not sufficiently encourage the timely identification and escalation of risk issues that have the potential to significantly affect our core operations and achievement of strategic objectives.”</p>
<p>Interestingly enough, when asked about reputational risk such as social media, energy and utility companies responded with a ‘potential impact’ rating. What every company must realize is that in a <a href="https://www.logicmanager.com/erm-software/2018/04/26/see-through-economy-risk-management/"><strong>See-Through Economy</strong></a>, social media is directly tied to reputational risk, which is in turn tied to the achievement of strategic objectives, and often related to cyber risk.</p>
<div id="attachment_126849" class="wp-caption aligncenter">
<div id="attachment_126849" style="width: 496px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-126849" class="wp-image-126849" src="https://www.logicmanager.com/wp-content/uploads/2019/03/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg" alt="" width="486" height="364" /><p id="caption-attachment-126849" class="wp-caption-text">Deepwater Horizon Drilling Unit on Fire, Wikipedia</p></div>
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<p>To drive home the importance of these emerging risks, I revisited some of the biggest scandals in the energy industry, such as the <a href="https://www.boston.com/news/local-news/2018/10/11/ntsb-preliminary-report-merrimack-valley-gas-explosions"><strong>Merrimack Valley Gas Explosion</strong>,</a> the <a href="https://www.businesswire.com/news/home/20181205005825/en/Lieff-Cabraser-Edelson-PC-File-Class-Action%20Unsafe%20infrastructure"><strong>PG&E electric fires</strong>,</a> and of course, the<strong><a href="https://www.logicmanager.com/erm-software/2016/06/02/risk-management-negligence-accident/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> Plains All American Pipeline Spill.</a></strong> Each of these mishaps carried immense reputational risk, and more importantly, were 100% preventable because they stemmed from severe negligence.</p>
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<h3>Mitigate Energy Risks with the Right Tools</h3>
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<p>So how can you prevent negligence and corporate mishaps in the energy industry?</p>
<p>It all starts with having the right tools. At <strong><a href="https://www.irmi.com/conferences/energy-risk-insurance-conference">IRMI ERIC</a></strong>, I presented two physical tools attendees could use every day to facilitate a risk-based approach.</p>
<p>First, I showed them LogicManager’s <strong><a href="https://www.logicmanager.com/download-risk-based-approach-wheel/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Risk-Based Approach Wheel</a></strong>, which gives great visual insight into the activities performed during an end-to-end, iterative ERM process. You can download the Wheel <strong><a href="https://www.logicmanager.com/download-risk-based-approach-wheel/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">here.</a></strong></p>
<p>I also introduced them to another one of my favorite tools – the <a href="https://www.logicmanager.com/download-risk-based-translator/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>Risk-Based Translator</strong></a>. Often times, organizations have a lot of trouble communicating about risk because each department has their own secret lingo of sorts. Download the Translator <a href="https://www.logicmanager.com/download-risk-based-translator/"><strong>here</strong></a> to see how you can create a common language across departments.</p>
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<p>One question I got from an attendee was how to actually engage people. I answered with one of my favorite approaches: get someone in the C-suite in your corner. Try giving a heads up to a risk-minded C-suite executive that you’ll be sending out a risk assessment to key departments. Ask him or her to send out an email to everyone involved, directly thanking those who completed the assessment and expressing how important it is for the company. Then, more people will follow suit and complete the assessment!</p>
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<h3>Tackling Cyber Risk in the Energy Industry</h3>
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<p>The best way to get a risk-based approach up and running is to take it one initiative at a time. In my presentation, I focused on one of the top risks in the energy industry: cybersecurity. This was a great example to use, not only because of its prevalence in the industry, but because it is deeply connected to reputational and organizational risk, as you can imagine.</p>
<p>Just recently, in fact, the North American Electric Reliability Corporation (<a href="https://www.nerc.com/"><strong>NERC</strong></a>) fined an energy company <strong><a href="https://www.secureworldexpo.com/industry-news/4-things-to-learn-from-cybersecurity-failures">$10 million</a></strong> for over 100 physical and cyber security violations to the regulatory authority’s Critical Infrastructure Protection (<a href="https://www.nerc.com/pa/Stand/Pages/CIPStandards.aspx"><strong>CIP</strong></a>) standards. It’s the biggest fine NERC has ever levied for CIP violations.</p>
<p>Complying with a standard such as CIP is a huge, cross-functional effort in and of itself. When you come to terms with the fact that compliance is the minimum operating standard, protecting your organization from cyber risk becomes an even larger task.</p>
<p><img class="size-full wp-image-126873 aligncenter" src="https://www.logicmanager.com/wp-content/uploads/2019/03/2019-IRMI-Presentation-Chart.png" alt="" width="908" height="310" /></p>
<p>At IRMI ERIC 2019, I advised my audience to take the following steps:</p>
<ol>
<li>Break down a standard like NERC CIP into actionable, bite-sized line items and determine which departments they impact</li>
<li>Pick one of these line items, such as required access controls and identify where your organization is excelling and where there are gaps by administering <strong><a href="https://www.logicmanager.com/erm-software/product/assess/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">standardized risk assessments</a></strong> to impacted departments</li>
<li>Once this information is collected, start filling in the gaps with new <a href="https://www.logicmanager.com/erm-software/product/mitigate/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>mitigation activities</strong></a> like dual authentication procedures, password vaults, entitlement policies, etc.</li>
<li>Implement ongoing <a href="https://www.logicmanager.com/erm-software/product/monitor/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>monitoring activities</strong></a> like privileged user access reviews; consider automating these processes with regularly recurring reminders and notifications</li>
<li>Make sure there is a standardized method for <strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">reporting incidents</a></strong> like security and non-performance events</li>
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<p>As always, I would also recommend doing a health check of your ERM program and processes. The best way to do this is by taking the RIMS Risk Maturity Model, which has been recommended by the American Petroleum Institute. You can <strong><a href="http://riskmaturitymodel.org/">take the free Risk Maturity Model assessment here</a></strong> to see how your program stacks up against industry standards.</p>
<p>The energy industry, like many others, is coming to terms with the fact that risks are interdependent. If risks are intertwined, then it can only follow that departments must also be intertwined, and must work together to protect their organization and prevent risks from blooming into disaster through an integrated approach.</p>
<p><em>This article was originally posted on <a href="https://www.logicmanager.com/erm-software/2019/03/06/top-three-risks-energy-industry/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767">How to Tackle The Top Three Risks in the Energy Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>What Can Banks and All Companies Learn from Apple’s Latest Glitch?</title>
		<link>https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759</link>
				<comments>https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759#respond</comments>
				<pubDate>Fri, 22 Feb 2019 14:31:57 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>
		<category><![CDATA[Events]]></category>
		<category><![CDATA[enterprise risk management]]></category>
		<category><![CDATA[Incident Management]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8759</guid>
				<description><![CDATA[<p>Even a $1 trillion company cannot hide in the See-Through Economy. After a fourteen-year-old boy discovered a serious bug in Apple’s group FaceTime feature, his mother e-mailed, faxed, and tweeted the report to Apple. However, it wasn’t until after her<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759">What Can Banks and All Companies Learn from Apple’s Latest Glitch?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><img class="size-medium wp-image-8760 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />Even a $1 trillion company cannot hide in the See-Through Economy. After a fourteen-year-old boy discovered a serious bug in Apple’s group FaceTime feature, his mother e-mailed, faxed, and tweeted the report to Apple. However, it wasn’t until after her tweet went viral that the bug was disabled. How could Apple have responded more efficiently and avoided this reputational risk?</p>
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<p>Most Apple users are familiar with FaceTime, Apple’s video chatting software. The feature had recently been upgraded, so that users could loop multiple people into a group FaceTime.<strong><a href="https://www.cnn.com/2019/01/29/tech/facetime-bug-teen-discovery/index.html"> However, the feature has been disabled as a result of a major glitch</a></strong> discovered a few weeks ago by fourteen-year-old Grant Thompson. The serious privacy flaw could force a user’s device to pick-up an incoming group FaceTime even if they declined the call. The bug even enabled access to the recipient’s camera if they interacted with their device’s hardware.</p>
<p>Upon discovering the significant security and privacy flaw, Thompson’s mother immediately e-mailed a bug report and video to Apple on their support site. She also called and tweeted at CEO Tim Cook and even faxed a letter using her law firm’s letterhead. Despite her efforts, after several weeks the incident report had still not been processed. Thompson didn’t hear back from Apple until after national media outlets broke the news about the FaceTime glitch and traced the report back to her original tweets. Ms. Thompson’s tweet on the other hand, was escalated to the public, instantly. This is an example of the<strong><a href="https://www.logicmanager.com/erm-software/2018/04/26/see-through-economy-risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> See-Through Economy</a></strong> at work, which encapsulates the shift towards transparency and accountability brought on by social media and technology. Before Apple could formally acknowledge the issue, the public had been made well-aware that their privacy was at risk.</p>
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<h3></h3>
<h3>Reputational Risk in a See-Through Economy</h3>
<p>When there is not a clear path of communication to the company, consumers are empowered by social media to voice their issues. Because an enterprise-wide risk management process was not in place, Apple could not respond and resolve the issue before Ms. Thompson’s tweet went viral on twitter. As a result, the glitch not only exposed Apple to major privacy violation risks, but also to reputational risk.</p>
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<p>Companies can no longer effectively manage reputational risk after the fact, so they must take a proactive <a href="https://www.logicmanager.com/erm-software/product/risk-based-process/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>risk-based approach</strong> </a>to ensure the risk does not occur in the first place. Customer-facing<strong><a href="https://www.logicmanager.com/incident-management-software-demo/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> incident management software </a></strong>is essential to handling corporate mishaps. With connected incident management tools, organizations can immediately resolve issues through an efficient workflow that directs the incident to the appropriate parties.</p>
<p>Difficulties  in the reporting process prevented the issue from being resolved sooner. Although the tech giant has a bug reporting channel, it is available only to designated specialists in the tech or security field. Given there was no public-facing channel for users to report security and privacy issues, Ms. Thompson used traditional methods including calling their support line, faxing, and tweeting. Unfortunately, the support line she reached was for traditional product support, which was not prepared for escalating security and privacy issues. Once her tweet went viral, Apple’s social media team was able to escalate the issue to the appropriate people; however, the bug publicly demonstrated Apple’s slow response and lack of escalation process.</p>
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<h3>Businesses Need to Revamp Customer-Facing Incident Management</h3>
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<div class="fusion-separator fusion-full-width-sep sep-none">Without enterprise risk management, reporting, responding, and remediating issues is often ineffective and time-consuming. As I previously mentioned, Apple’s reporting process left no options available for Ms. Thompson, who stated “It’s exhausting and exasperating. It’s very poorly set up especially for the average citizen. I feel like I went above and beyond.”</div>
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<p>Apple is not the only corporation who has struggled with implementing customer-facing incident management. As a result of the change in <strong><a href="https://www.wsj.com/articles/rules-designed-to-catch-terrorists-cost-this-unsuspecting-customer-her-bank-account-1531495802">“Know Your Customer”</a></strong> laws, it has been a challenge for financial institutions to execute anti-money laundering regulations properly. <strong><a href="https://soundcloud.com/logicmanager/risk-management-podcast-citibank-michigan-state-larry-nassar">Citibank</a></strong> recently rolled out a compliance program designed to protect customers and the company from illegal financial activity. However, what was initially designed as a program intended to catch terrorists has left multiple innocent customers with frozen bank accounts and zero notice. Without a customer-facing website to escalate issues, the remediation process is time-consuming with significant barriers to reach the appropriate employees.</p>
<p>Citibank is not unlike other banks, financial institutions, and most companies. While many have internal whistle-blower hotlines to report misdeeds, very few companies have reporting channels accessible to customers. Surprisingly, many financial institutions even require physical mail as a part of their complaint reporting process. These channels primarily serve as a means for customers to feel “their voices have been heard”. Often times, financial institutions do not have the management processes to identify and filter risk, fraud and misdeed reported from outside the organization. As a result, the resolution process is ineffective and complaints are typically aggregated over time serving no real purpose over than for process improvement.</p>
<p>With effective enterprise risk management in place, customer responses for a variety of issues can follow a clear and cost-effective path to resolution. Customer-facing incident management offers customers easily-accessible channels to escalate their incident reports. In the See-Through economy, risk transcends every industry. Regardless of what the incident is, be it a major software bug or innocent customers’ bank accounts being inadvertently frozen, incident management and reporting are essential components of<strong><a href="https://www.logicmanager.com/grc-software/risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> effective risk management</a>.</strong></p>
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<h3>Take the Steps to Improve Your Incident Management Program:</h3>
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<p>Without effective<strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> incident management tools, </a></strong>incident reporting can be a large source of liability. Having a disconnected reporting process is not only a disservice to the customers, but can negatively impact the company as well with exposure for negligence.</p>
<p>With the help of an <strong><a href="https://www.logicmanager.com/grc-software/risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">enterprise risk management</a></strong> system, you can stay ahead of the curve in the event of an incident. With <strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">incident reporting software</a></strong><strong>,</strong> you can give customers an outlet to easily submit issues that are immediately forwarded through a remediation workflow. While social media will still be at customers’ finger tips, you can ensure they are satisfied with a seamless and efficient resolution process. <strong><a href="https://www.logicmanager.com/incident-management-software-demo/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Incident management software</a></strong> will also give you a better understanding of why, when, and where incidents are happening, so you can prevent them from recurring in the future. Implementing the following pointers will help to improve your incident management program, so you can avoid ending up like the aforementioned companies.</p>
<ul>
<li><b>Front-line reporting</b>: Empower customers and employees to submit incidents in customized forms that collect all the information your organization will need to engage the appropriate business units  in the resolution process.</li>
</ul>
<ul>
<li><b>Automate Workflows:</b> Design a workflow for each incident to get it routed to the right people across business silos to resolve it efficiently and cost-effectively.</li>
</ul>
<ul>
<li><b>Centralize Incidents: With all departments in one system, they can easily communicate with one another about issues that arise and work towards a solution.</b></li>
</ul>
<ul>
<li><b>Generate Reports:</b> With all of your incident information in one place, you’ll be able to uncover trends within your data. Then, implement controls to prevent future incidents.</li>
</ul>
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<h4>Download our Incident Management eBook</h4>
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<p>Check out our complimentary eBook, <a href="https://www.logicmanager.com/ebook-risk-based-incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><b>“How to Take a Risk-Based Approach to Incident Management,”</b></a> for more information on how to resolve issues and engage the right people in the right amount of time.</p>
<p><strong>About the Author: Steven Minsky</strong></p>
<p>Steven is a recognized thought leader in ERM, CEO of LogicManager, and co-author of the RIMS Risk Maturity Model. Follow him on Twitter at @SteveMinsky</p>
</div>
<p><em>This article was originally published on <a href="http://LogicManager.com/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759">What Can Banks and All Companies Learn from Apple’s Latest Glitch?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Continued help by insurers in Fort McMurray Alberta</title>
		<link>https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746</link>
				<comments>https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746#respond</comments>
				<pubDate>Fri, 15 Feb 2019 16:11:57 +0000</pubDate>
		<dc:creator><![CDATA[Steve Kee]]></dc:creator>
				<category><![CDATA[Catastrophe]]></category>
		<category><![CDATA[Home]]></category>
		<category><![CDATA[Natural Disasters]]></category>
		<category><![CDATA[Property Restoration]]></category>
		<category><![CDATA[Alberta]]></category>
		<category><![CDATA[Fort McMurray wildfire]]></category>
		<category><![CDATA[home insurance]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8746</guid>
				<description><![CDATA[<p>Insurance Bureau of Canada attempted to respond to a recent piece on the Fort McMurray Alberta rebuild following the fire in 2016. The magazine has not printed the response. The following is IBC’s position. The recent article by Nicholas Köhler<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746">Continued help by insurers in Fort McMurray Alberta</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<p><img class="wp-image-8753 size-medium alignright" src="https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-768x512.jpg 768w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1.jpg 800w" sizes="(max-width: 300px) 100vw, 300px" /></p>
<p>Insurance Bureau of Canada attempted to respond to a recent piece on the Fort McMurray Alberta rebuild following the fire in 2016. The magazine has not printed the response. The following is IBC’s position.</p>
<p>The recent article by <a href="https://www.macleans.ca/news/canada/fort-mcmurray-fire-insurance-two-years-later/">Nicholas Köhler on the Fort McMurray rebuild (Maclean’s, January 23, 2019)</a> doesn’t provide a full picture of the extensive work that has taken place in Fort McMurray since the 2016 wildfire. The devastating fires that swept through the community forced the largest wildfire evacuation in Alberta’s history. Close to 90,000 people were forced to flee their homes. This was a traumatic situation for Fort McMurray residents, and insurers acted immediately the moment the fire started.</p>
<p>Residents, governments, emergency officials, non-profits and insurers have all done an incredible amount of work to get the community back on its feet. However, while almost all insurance claims are closed and most residents are back into their homes, the work is not yet done. <a href="http://www.ibc.ca/ab/">Insurance Bureau of Canada (IBC)</a> understands that there are some families still working through claims with their insurers. This is never the preferred situation.</p>
<p>Policyholders with outstanding issues are encouraged to call IBC’s Consumer Information Centre at 1-844-2ask-IBC or the <a href="https://www.alberta.ca/insurance.aspx">Alberta Superintendent of Insurance</a> at 780-643-2237 for information about the dispute resolution process and other tools that may be available to them. The insurance industry will continue to assist residents until 100% of the claims are closed and families are back in their homes. We are here to help.</p>
<p>Sincerely,</p>
<p><a href="http://www.ibc.ca/nt/about-us/leadership/vp-western">Celyeste Power</a><br />
Vice-President, Western<br />
Insurance Bureau of Canada</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746">Continued help by insurers in Fort McMurray Alberta</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>What’s Happening With B.C. Auto Insurance?</title>
		<link>https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727</link>
				<comments>https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727#respond</comments>
				<pubDate>Sun, 20 Jan 2019 16:35:00 +0000</pubDate>
		<dc:creator><![CDATA[Willie Handler]]></dc:creator>
				<category><![CDATA[Auto]]></category>

		<guid isPermaLink="false">http://www.insblogs.com/?guid=2f02e7655a35fac645abfefb11ec591a</guid>
				<description><![CDATA[<p>Some of my Ontario readers might be wondering what is happening in B.C. and their auto insurance reforms.When the NDP government was formed, they inherited quite a mess. Auti insuracne costs were rising rapidly and rates increases had not kept up. The ...</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727">What’s Happening With B.C. Auto Insurance?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8730 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252.jpg 724w" sizes="(max-width: 300px) 100vw, 300px" />Some of my Ontario readers might be wondering what is happening in B.C. and their auto insurance reforms.</p>
<p>When the NDP government was formed, they inherited quite a mess. Auto insurance costs were rising rapidly and rates increases had not kept up. The previous government had also drained the public insurer, the Insurance Corporation of British Columbia (ICBC), of surplus funds from previous years. As a result, the ICBC was running losses in excess of $1 billion.</p>
<p>The average premium in B.C. is now about $200 more than those in Ontario. Yes, it’s hard to believe that there could be a mess worse than Ontario. The ICBC has been unfairly painted the villain. The private insurance industry is trying to use B.C. as an example of how government-run insurance doesn’t work. That’s just not true. In this case, competition could not possibly resolve the province’s insurance problems.</p>
<p>British Columbia is the only jurisdiction that still has a full tort system. In other words, their system is much like Ontario’s back in the 1980s with growing settlements and high legal costs.. The ICBC and B.C. government have determined that tort access needs to be restricted.</p>
<p>Beginning April 1 of this year, there will be a minor injury cap of $5,500 for pain and suffering awards in B.C., similar to what a number of other Canadian jurisdiction have done. At the same time, no-fault accident benefit coverage will be expanded. B.C. is also updating how it calculates rates by providing discounts to safe drivers and penalizing those who cause accidents. A change that is long overdue.</p>
<p>The ICBC expects to save about $1 billion dollars from these reforms. It will interesting to see if their no-fault model will work. If it doesn’t, the next step may be to eliminate tort altogether and design a pure-no-fault system.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727">What’s Happening With B.C. Auto Insurance?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Flexible Risk Assessments and Effective Reporting in the Banking Industry</title>
		<link>https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826</link>
				<comments>https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826#respond</comments>
				<pubDate>Mon, 22 Apr 2019 19:16:23 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Business Risks]]></category>
		<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8826</guid>
				<description><![CDATA[<p>The banking industry is perceived as the most advanced in their understanding and implementation of risk management. Although banks have indeed made huge progress in risk management, two areas all banks can improve is the structure used in conducting their<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826">Flexible Risk Assessments and Effective Reporting in the Banking Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><img class="size-medium wp-image-8827 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/04/ABA-and-GCOR-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />The banking industry is perceived as the most advanced in their understanding and implementation of risk management. Although banks have indeed made huge progress in risk management, two areas all banks can improve is the structure used in conducting their assessments to enable actionable and insightful strategic reporting.</p>
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<p>I’ve found that the understanding and implementation of risk management is driven not by industry or size of institution, but rather by its people: boards, executives, their teams and front-line managers keeping their organizations on track to achieve their goals and preventing missteps and scandals in the fast-paced age of the See-Through Economy.</p>
<p>In an effort to give these two groups some insight into how they can accomplish this, I presented at two conferences for risk managers in the financial industry on new best practices and emerging trends. At the <a href="https://www.aba.com/Training/Conferences/Pages/riskmanagement.aspx">American Banking Association’s 2019 Risk Management Conference</a> in Austin, TX, I presented on how attendees could get more out of cross-functional risk assessments. A short day later, I dove into effective board reporting at the <a href="https://landing.rmahq.org/gcorxiii">Risk Management Association’s GCOR XIII Conference</a> in Cambridge, MA.</p>
<p>In this blog, I’ll recap some of the highlights of these two important, intimately related topics. I’ll also pass along the tools I showed to each session’s attendees to give you a head start on implementing these tips for <a href="https://www.logicmanager.com/erm-software/operational-risk-management-software/banks/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">risk management in the banking industry</a>.</p>
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<h3>Goals and Challenges in the Banking Industry</h3>
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<div class="fusion-sep-clear">Attendees of ABA and GCOR alike have similar goals and challenges in the financial industry. So first, what are these goals? Protect your bank by identifying, mitigating, and monitoring risks before they manifest and identify new opportunities and capital efficiency.</div>
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<p>What’s the challenge? Today, there’s a lot to protect your bank from – data breaches, reputational damage, non-compliance, a recession, and so much more. So the challenge, in a word, is complexity.</p>
<p>To paint a small picture of this complexity, think about the main regulatory body your bank has to align with and how many different risk categories they define. What I’ve seen time and time again is banks trying to put together different risk assessments to match up with all these different categories – the FFIEC’s 6 risk categories, the OCC’s 9 risk categories, etc.</p>
<p>The problem with this approach is if you take one of these categories, say Reputation Risk, and try to ask someone in IT to fill out a risk assessment on this category, they won’t know where to begin. They can only speak to what they know, and most IT professionals haven’t made the connection between what they know and reputation risk.</p>
<p>A better approach is to attract as many as you can with honey. The honey in this case is cross-functional risk assessments.</p>
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<h3>Get More out of Cross-Functional Risk Assessments</h3>
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<p>With cross-functional risk assessments, you’ll be able to gather, re-aggregate, and report on all the information you need to protect your business from a myriad of risks.</p>
<p>First, my presentation is summarized in our eBook <a href="https://www.logicmanager.com/download-better-risk-assessments-financial-ebook/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">“5 Steps for Better Risk Assessments: A Special Edition for the Financial Industry,”</a> so feel free to download a free copy for an in-depth recap.</p>
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<p>For the purposes of this blog, however, I’d like to reiterate three things:</p>
<p><strong>1) The key to cross-functional risk assessments is taking a multi-disciplinary approach.</strong> Risk management is in every employee’s job title, whether they know it not. Having their engagement in the risk assessment process is crucial to achieving an attract-with-honey effect. <a href="https://www.logicmanager.com/download-risk-based-approach-wheel/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Download the Risk-Based Approach Wheel I showed ABA attendees here.</a> Use it to connect with other professionals in your organization like Audit or Compliance by starting with their priorities and working your way around the risk management cycle from their most preferred starting point<u>!</u></p>
<p><strong>2) Rethink your risk assessment categories.</strong> Instead of creating risk assessments with categories that align specifically with FFIEC or OCC categories, use standards in scoring, naming conventions, and risk libraries to organize them by key departments, key products and services, and key regulations. This way, you’re talking to people about what they know best and getting the most accurate information with the accountability for those risks attached.</p>
<p><strong>3) Re-aggregate risk assessment information to align with big regulator risk categories and more</strong>. With a <a href="https://www.logicmanager.com/erm-software/product/risk-taxonomy/https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">taxonomy</a> in place, and by using the standards from #2 above, you can categorize one risk in multiple ways. Let’s say the Marketing Manager identifies someone hacking into the website as a risk. This would be simultaneously categorized as a marketing risk, an external risk, and a reputation risk (one of the OCC’s main categories).</p>
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<h3>The Why, How, and What of Effective Board Reports</h3>
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<p>Item number three above has everything to do with developing a flexible reporting structure. With such a structure, you can take any piece of information you’ve gathered from across the enterprise and dig into it in a multitude of ways. This requires an interrelated and standardized structured approach called a “taxonomy”.</p>
<p>Above we talked about how aligning with the main regulatory bodies adds complexity to managing risk in the financial industry. Another faction of this complexity is aligning with strategic goals set by the board. So, not only are risk managers juggling hundreds of regulations, they also have the board and others calling on them for evidence that their ERM program is effectively supporting the goals they set for the company.</p>
<p>Risk managers may not at first realize the massive amounts of information already on hand throughout their bank covering all areas of the organization down to the front lines. Without standards and taxonomy to link and relate all the connections across that information, it can be very challenging to portray how operational activities also align with the business’s greater strategic goals. Historically, boards of directors and senior leadership have struggled to engage with risk managers because information is typically not collected and distilled in the most effective way. The boards want to see the bottom line: how risk management is supporting their strategic objectives.</p>
<p>I’d like to give you a few tips on how you can overcome this challenge and paint the big picture for the board, while distilling this information into a digestible yet insightful format.</p>
<p>First, the taxonomy I describe above is a great tool for aggregating risk in many different ways. With a flexible categorization structure in place, you can pull reports on risks tied to different departments, products, regulations, or even strategic goals. The board wants concise deliverables providing evidence that the appropriate risk management controls are in place and that they are effective over the risks they are designed to mitigate. They also want to know that these risks are monitored, so that they won’t be the next name in the headlines.</p>
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<p>Another tip to keep in mind, is to collect information in a way that enables your reports to be flexible. Compiling enterprise-wide risk into <a href="https://www.logicmanager.com/erm-software/product/dashboard-reports/">strategic dashboards</a>gives the board a comprehensive look at the “why” of an aggregated view of risk and its implications, and also provides the flexibility to drill into individual risks all the way out to the front-business lines where the risks are known. They are strategic in that the information in the dashboard can be dynamic but the presentation framework remains the same so that board members can quickly zoom in on the insights they need without needing to interpret the structure of how the data was gathered or changing the presentation style that is being used. The board doesn’t need to be overwhelmed with all of the risks at the business activity level, but it is best to have the option to dig deeper and re-aggregate information within the report.</p>
<p>Once the board has a clear view of their organization’s risk, they can rest assured that your risk management program has their strategic organizational goals in mind. As a result, the board will continue to provide the necessary support for your program.</p>
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<p>It was an honor presenting at the ABA and RMA GCOR XIII Conferences, where I got to share and learn from risk professionals in one of the most advanced industries in the risk management fields. I hope attendees, and new readers, found these tips and tools useful!</p>
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<p><strong><em>This article was originally published on <a href="https://www.logicmanager.com/erm-software/2019/04/22/banking-risk-assessments-reporting/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></strong></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/business-risks/flexible-risk-assessments-and-effective-reporting-in-the-banking-industry/8826">Flexible Risk Assessments and Effective Reporting in the Banking Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Ontario Government Takes a Different Approach to Auto Insurance Reforms</title>
		<link>https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813</link>
				<comments>https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813#respond</comments>
				<pubDate>Fri, 12 Apr 2019 14:02:00 +0000</pubDate>
		<dc:creator><![CDATA[Willie Handler]]></dc:creator>
				<category><![CDATA[Auto]]></category>

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				<description><![CDATA[<p>The 2019 Ontario Budget is out and there's some positive news for auto insurance consumers.Finally, a government in Ontario takes a slightly different approach to repairing a damaged auto insurance product. For too long, the focus has been largely on n...</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813">Ontario Government Takes a Different Approach to Auto Insurance Reforms</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8815 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-300x201.jpg" alt="" width="300" height="201" srcset="https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-300x201.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560-598x400.jpg 598w, https://www.insblogs.com/wp-content/uploads/2019/04/iStock-91703560.jpg 723w" sizes="(max-width: 300px) 100vw, 300px" />The 2019 Ontario Budget is out and there’s some positive news for auto insurance consumers.</p>
<p>Finally, a government in Ontario takes a slightly different approach to repairing a damaged auto insurance product. For too long, the focus has been largely on no-fault accident benefits and ignoring virtually every other aspect of the product. The result has been a complex system that has not kept up with our changing society.</p>
<p>Here is what the 2019 Ontario Budget has to say about auto insurance:</p>
<p><b>1. Lowering Costs and Fighting Fraud</b></p>
<p>Fighting fraud is a common theme for every government. The current government is looking for FSRA to overhaul the licensing system for service providers to reduce regulatory burden and fraud, including treatment fees. I’m not impressed with the existing licensing system. When I worked on it in the early part of the decade, I had intended on it to truly focus on identifying fraudulent operators. It would have only licensed the largest billing facilities. Instead, the government just designed a broad licensing system. Hopefully, someone will look back at the original intent. Streamlining the system will also reduce costs.</p>
<p>The government has indicated that they would like to see contingency fee agreements become more transparent and review the effectiveness of contingency fees. Sounds like a good idea.</p>
<p>The government has also signalled a desire to establish a Serious Fraud Office. This is an idea that has been bounced around for years now. My view is that it is the insurance industry that has to take the lead on fraud as is the case with other industries.</p>
<p>The government also is pushing the idea of more e-commerce. That would mean more electronic communications when purchasing insurance and making claims. The Budget specifically mentions electronic proof of insurance, something <a href="http://williehandler.blogspot.com/2013/05/electronic-proof.html">I advocated for 6 years ago</a>.</p>
<p><b>2. Increasing Accessibility and Affordability</b></p>
<p>This is a common theme when a government talks about auto insurance. How to achieve it is the trick. The Budget leaves the door open to basing rates on credit scoring and preferred providers for vehicle repairs and health care services. I don’t see credit scores and providing more accessibility or affordability. It will have the opposite affect on low income families. Insurers will gladly swap territorial rating for credit score rating.</p>
<p>The government is also planning to simplify insurance forms, policies and other insurance documents. I’m all for that!</p>
<p><b>3. Adopting the Driver Car Plan</b></p>
<p>This is the most intriguing part of the Budget announcement for me. It talks about a Driver Care Card, which would streamline access to care. I have no idea what this would look like. It does relate to the long awaited programs of care.</p>
<p>I initiated the Programs of Care project before I left FSCO in 2011 and agree with its introduction. Led by Dr. Pierre Côté, the work on developing programs of care was completed in three years. Long overdue, this aspect of the Marshall recommendations and subsequent government announcement has been in development for six years.</p>
<p>Programs of care were first developed by the Workplace Safety and Insurance Board (WSIB) to deal with low back pain. The initial whiplash associated disorder guidelines were created in 2003 based on the WSIB low back pain program of care. FSCO had undertaken to develop programs of care for a range of soft tissue injuries. An interim solution was the introduction of the minor injury definition and minor injury guideline in 2010. The expectation is that programs of care will simplify access to treatment and reduce disputes in the system. If that does occur, it will potentially reduce some of the transactional costs in the system.</p>
<p>Finally, the no-fault accident benefits cap on medical, rehabilitation and attendant care benefits for those catastrophically injured will be restored to $2 million. The cap was reduced to $1 million in 2016 by the previous government and was one of the worst changes they made. I’m for controlling costs for those with minor injuries but those with the most serious injuries need to be properly covered.</p>
<p><b> 4. Increasing Competition</b></p>
<p>Increasing competition really means breaking the existing mold where everyone has the same type of auto insurance product. Driving behaviour, usage and technology have all changed. The product needs to reflect that. So I agree, lets see some innovative products. As long as the regulator ensures consumers are adequately protected.</p>
<p>Again, the government is looking to FSRA to achieve these changes. What can we expect to see? Things like pay-as-you-go insurance. Great for people who don’t drive much. Perhaps more telematics. A simplified rate approval process. Streamlining the SABS, something I’ve been advocating for, for years. Higher limits for small claims court.</p>
<p>This is an ambitious agenda and a break from previous reform initiatives. Can’t wait to see how this plays out.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/ontario-government-takes-a-different-approach-to-auto-insurance-reforms/8813">Ontario Government Takes a Different Approach to Auto Insurance Reforms</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>P&C Brokerage Industry – Let’s talk Management Buy-ins</title>
		<link>https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803</link>
				<comments>https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803#respond</comments>
				<pubDate>Mon, 01 Apr 2019 17:54:35 +0000</pubDate>
		<dc:creator><![CDATA[Mike Berris]]></dc:creator>
				<category><![CDATA[Business Risks]]></category>
		<category><![CDATA[Business Strategy]]></category>
		<category><![CDATA[Earnings / Ratings]]></category>
		<category><![CDATA[Enterprise Risk Management]]></category>
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		<category><![CDATA[management buy-ins]]></category>
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		<category><![CDATA[p&c insurance]]></category>
		<category><![CDATA[smythe advisory]]></category>

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				<description><![CDATA[<p>Let me start by saying that some of the best managed and most profitable brokerages in Canada are employee-owned. We believe that every succession planning process should, at the very least, consider this option. When talking about management buy-ins, a<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803">P&C Brokerage Industry – Let’s talk Management Buy-ins</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<p>Let me start by saying that some of the best managed and most profitable brokerages in Canada are employee-owned. We believe that every succession planning process should, at the very least, consider this option.</p>
<p><img class="alignnone size-large wp-image-4130" src="https://www.smytheadvisory.com/wp-content/uploads/2019/03/management-buy-ins-1024x614.jpg" alt="Management Buy-ins" width="1024" height="614" /></p>
<p>When talking about management buy-ins, a good place to start is to understand the reasons why we don’t see more of them. Keep in mind, some of these reasons are sometimes more perception than reality. Here are a few examples:</p>
<ul>
<li><strong>Lack of Bench Strength</strong> – your organization does not have the talented young people who have the drive and ability to run your business</li>
<li><strong>Finances</strong> – employees don’t have the financial strength to commit capital to do the deal</li>
<li><strong>Financing</strong> – the organization does not generate enough cash flow to support the debt servicing costs given current valuations</li>
<li><strong>Too Complicated</strong> – it is easier to continue to operate and then monetize through a full divestiture</li>
<li><strong>Control</strong> – while you own the business, you want full control</li>
</ul>
<p>Of course, all these issues are real and, in many cases, good reasons for not under-taking a management buy-in. Having said that, I think management buy-ins make sense in certain situations and they are often overlooked because the brokerage owner either doesn’t know this might be a viable option or, they don’t know how to proceed.</p>
<p>Let’s look at some fundamentals of a good plan. First, there must be a process from which to evaluate what is best for you, your family, the organization and then the potential investors. While each situation is different, we typically suggest the following:</p>
<ul>
<li>With the help of family, and or a trusted advisor, come up with some specific financial outcome goals. It might be as simple as I think my brokerage is worth $5 million. I would like to monetize $2 million now with the balance greater than $5 million in seven years;</li>
<li>Complete a deep dive of the business. The resulting document describes the composition of the business from an underlying book and financial perspective, lays out the possible market valuation, cash flow available for debt service and areas of possible value enhancement. This will be needed for both investors and potential financing sources.</li>
<li>The deep dive help focus on the type of investor that is best suited for you and your brokerage. It might be current employees, outside producers, an insurance company or even an executive that is currently working at an insurance company.</li>
<li>Prepare a detailed step-by-step plan of all the structural issues that must be addressed, including income tax, legal structure, governance and potential financial structure.</li>
<li>Execute the plan.</li>
</ul>
<p>Proper planning and preparation are the key to success. There is little point in inviting employees or outside investors in the process unless they are going to add value. It is a far better approach to advertise for exactly who you’re looking for. There will be a lot of interest if they see a possible return.</p>
<p>The same goes for governance. You need to protect your investment and exercise ultimate control. At the same time, the investment must be meaningful to your new partners. A strong governance model supported by a well-crafted shareholder agreement is critical. The agreement needs to address those issues that require unanimous shareholder consent, under what conditions shareholders can obtain more or divest in shares and how they will be valued. There are a number of great lawyers who both understand the P&C sector and know how do craft effective agreements.</p>
<p>There are two issues that generally take some finesse. In the case of employee investors, it is getting them to commit some personal capital. For younger people, they generally don’t have any capital. But if they do, then it is paramount that they have at least something at risk. While you can work around this, I struggle to justify why a Brokerage Owner should commit to a plan to transfer ownership without some immediate commitment by the investor.</p>
<p>The second issue is financing the transaction. The financing approach depends on the circumstances. Banks, insurance companies and private investors each have unique advantages and potential challenges. Your chosen plan will play an important role in what type of financing you look for.</p>
<p>Management buy-ins should be part of an overall plan that leads to the eventual transition of ownership. Yes, there are complicated financial and emotional considerations. But, with a well-designed tax and financial strategy you can protect your family’s financial future, reduce the organizations dependence on you and ultimately increase the overall valuation of the business.</p>
<p>If you have any questions or comments, please send them to <a href="https://www.smytheadvisory.com/about/professionals/mike-berris/"><strong>Mike Berris</strong></a> at <a href="mailto:mberris@smythecpa.com"><strong>mberris@smythecpa.com</strong></a>.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/markets-coverages/pc-brokerage-industry-lets-talk-management-buy-ins/8803">P&C Brokerage Industry – Let’s talk Management Buy-ins</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</title>
		<link>https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790</link>
				<comments>https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790#respond</comments>
				<pubDate>Tue, 19 Mar 2019 17:51:05 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8790</guid>
				<description><![CDATA[<p>Cybersecurity vulnerabilities are an increasing concern for every company in every industry. Year over year, data breaches increase by 75%. Why are they becoming more prevalent, and how can you protect your business? Before you can protect your company from<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790">Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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<p><a href="https://storage.ning.com/topology/rest/1.0/file/get/1501598821?profile=original" target="_blank" rel="noopener"><img class="align-right alignright" src="https://storage.ning.com/topology/rest/1.0/file/get/1501598821?profile=RESIZE_710x" width="350" /></a>Cybersecurity vulnerabilities are an increasing concern for every company in every industry. Year over year, data breaches increase by 75%. Why are they becoming more prevalent, and how can you protect your business?</p>
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<p>Before you can protect your company from a data breach, you have to understand why they’re occurring. So let’s look at some statistics:</p>
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<li><a href="https://www.verizondigitalmedia.com/blog/2017/07/2017-verizon-data-breach-investigations-report/" target="_blank" rel="nofollow noopener"><strong>81%</strong></a> of hacking-related breaches leveraged either stolen and/or weak passwords</li>
<li><a href="https://www.verizondigitalmedia.com/blog/2017/07/2017-verizon-data-breach-investigations-report/" target="_blank" rel="nofollow noopener"><strong>70%</strong></a> of employees reuse passwords at work</li>
<li>Ransomware is the top variety of malicious software, found in <a href="https://www.verizonenterprise.com/resources/reports/rp_DBIR_2018_Report_execsummary_en_xg.pdf" target="_blank" rel="nofollow noopener"><strong>39%</strong></a> of cases where malware was identified</li>
<li><a href="https://www.businesswire.com/news/home/20181115005665/en/Opus-Ponemon-Institute-Announce-Results-2018-Third-Party" target="_blank" rel="nofollow noopener"><strong>59%</strong></a> of companies experienced a data breach caused by a third party</li>
</ul>
<p>These stats start to give us an idea of the true root cause of cybersecurity risk. Yes, there are bad actors involved, but data breaches also have everything to do with governance.</p>
<p>Realizing the connection between good governance and cybersecurity is in itself a huge benefit to an organization. Not only do data breaches hold financial and intellectual property concerns, they also have the potential to impact a company’s reputation.</p>
<p>Because of <a href="https://www.logicmanager.com/download-see-through-economy-infographic/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">the See-Through Economy</a>, consumers are more aware of data breaches than ever before, they’ve cried out for better protection, and regulators have taken steps towards providing it for them. More opportunities to be hit with regulatory lawsuits mean more chances for a company’s brand to suffer.</p>
<p>The good news is, the leading causes of cyber breaches – weak passwords, ransomware, and third parties – can be entirely mitigated with good governance.</p>
<p> </p>
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<h3 class="title-heading-left"><strong>Cybersecurity Risks Are a Governance Problem</strong></h3>
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<div class="fusion-clearfix">There a few common misconceptions about cybersecurity. For one, many people believe breaches occur because of insufficient technology, but extensive spending on specific cybersecurity solutions has created more gaps than it’s closed. In reality, most cybersecurity issues are governance problems.</div>
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<p>For another, many organizations react by conducting employee training. Training increases awareness but is proven ineffective at changing behavior.</p>
<p>Reducing the risk of a cyber attack is no different from reducing any risk; it begins with identification. Specifically, <a href="https://www.logicmanager.com/erm-software/knowledge-center/best-practice-articles/risk-identification/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">root-cause risk identification</a>, as we’ve started to do with the bullets above.</p>
<p>If 81% of hacking-related data breaches leveraged weak passwords, then expensive point-of-sale solutions or artificial intelligence won’t work.</p>
<p>Additionally, trained employees rarely make an effort to change weak/reused passwords, and the problem lingers. In fact, a <strong><a href="https://blog.lastpass.com/2018/05/psychology-of-passwords-neglect-is-helping-hackers-win.html/" target="_blank" rel="nofollow noopener">survey by </a></strong>LastPass of LogMeIn, a password management tool, found that although 91% of the employees claim to understand the risks of using the same passwords across multiple accounts, 59% said they did so anyway.</p>
<p>Moreover, if over half of data breaches that occur stem from third-parties, what good will more training with employees or more expensive point solutions do?</p>
<p>Chances are, you already have many solid security policies and advanced technology in place. The next step is to implement good governance over them to make sure they’re actually protecting your company.</p>
<p>So how is good governance achieved?</p>
<p> </p>
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<h3 class="title-heading-left"><strong>Improve Cybersecurity with Good Governance</strong></h3>
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<p>Good governance doesn’t happen overnight. It takes a village. A huge misperception people have is that cybersecurity is the IT department’s responsibility. But actually, every department plays a key role. The first step to good governance, then, is realizing what piece of the puzzle each department holds. Consider the following:</p>
<ul>
<li>IT Security – Does not have the complete asset list, meaning it cannot identify all login practices or monitor password quality or access rights</li>
<li>Finance – Knows assets and process owner allocation, but has no method/system for sharing that information with the right parties</li>
<li>Third-Party Management – Has no system for managing authorized assets or sharing information or enforcement of controls</li>
<li>Legal – Has authority, but lacks any control implementation or monitoring</li>
<li>HR – Has no way of notifying application administrators of user entitlement changes</li>
<li>Audit – Has access to an entitlement policy, but doesn’t have a user access list mapped to specific assets</li>
</ul>
<p>The problems detailed above persist as long as departments are unable to communicate effectively. The information they need does exist; it’s a simple matter of finding out how to access and coordinate that information.</p>
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<p>A written password, asset, or access policy will not lead to realized benefits unless these limitations can be overcome. It’s not the existence of the policy itself that improves security; it’s the implementation, or operationalization, of that policy. This is why preventing breaches starts with governance, not technology. The crucial success factor is engaging each business area.</p>
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<h3 class="title-heading-left"><strong>Actively Engage Different Departments in Cybersecurity</strong></h3>
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<p><b>Step 1: Compose and Approve the Policy Itself</b></p>
<p>This step is already performed by the vast majority of organizations. The board or executive leadership decides to mitigate the threat posed by employees’ weak passwords, access rights, and asset lists. It enlists the help of the security department to validate the implementation of these policies.</p>
<p><b>Step 2: Grant the Security Department the Visibility it Needs</b></p>
<p>Here is where most organizations falter. They have a policy, but they can’t implement it or are unsure if all vulnerabilities are covered. The failure to operationalize is therefore a governance problem — an inability to coordinate activities and responsibilities across business silos. Senior leadership leaves it to security to ensure the company is adhering to the new policy because, after all, security has the most subject-matter expertise, right?</p>
<p>In reality, security can only handle certain parts of the policy. A current LogicManager customer reported its prior inability to implement such a policy. They told us, “We’ve been in deadlock for three years. We have a policy drafted, but security has said it only has actionable control over certain parts, and so nothing moves forward.”</p>
<p>LogicManager was able to help for a very simple reason: governance platforms provide a centralized information hub, plus the ability to:</p>
<ol>
<li>Break up roles and responsibilities</li>
<li>Assign those roles to appropriate stakeholders</li>
<li>Create <a href="https://www.logicmanager.com/erm-software/product/tasks-documents/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">automated tasks</a> to monitor the activity and ensure password/access policies are adhered to by <i>all </i>stakeholders</li>
</ol>
<p><b>Step 3. Carry Good Governance Out to Third Parties</b></p>
<p>Since 59% of data breaches stem from a company’s third parties, it’s not enough to shore up internal security, password, and access rights policies. You need to make sure your vendors are taking as many precautions with your data as you are.</p>
<p>How many applications does your company rely on? How many third parties have access to sensitive information? Which employees have access to which? How much access does each employee need to get their job done?</p>
<p>Enterprise risk management platforms can help answer these questions, as the best of them can help you govern your <a href="https://www.logicmanager.com/erm-software/plugins/software-asset-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">software asset management</a> and user <strong><a href="https://www.logicmanager.com/erm-software/plugins/user-access-review-template/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">access reviews.</a></strong></p>
<p>Again, IT isn’t solely responsible for keeping track of these vendors. Every organization’s finance department maintains a “master asset list” of all applications, since they approve the budgets and execute purchase orders for every application.</p>
<div class="fusion-text">
<p>Think about your payment systems, payroll system, customer relationship management, vendor management, and other third-party software applications. Once finance provides the list of assets and which departments own them, security simply reaches out to each process owner to operationalize the policy.</p>
<p><b>Step 4: Hold Each Party Accountable for its Piece</b></p>
<p>When security is isolated, they cannot operationalize the policy, and it’s paralyzed. But after security has access to information about which managers use which applications, it’s a simple matter of using the ERM system to push out <a href="https://www.logicmanager.com/erm-software/product/tasks-documents/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">tasks/notifications</a> and track the results.</p>
<p>Each process owner receives an automatic task within the platform, which includes background on the policy as well as what is required of the individual manager. Since it’s functional managers, not the security department, that know which employees should have access rights, it’s easiest to get this information by pushing the requirements and questions down to the front lines.</p>
<p>After process owners handle their own pieces of the policy, they send their information back to the security department, where it can be monitored. The same process can then occur with vendor management; which vendors have access to password-protected applications, and how should their contracts be updated to reflect proper enforcement of the policy? Enforcement is then managed through contract terms and audit capabilities (based on <strong><a href="https://www.logicmanager.com/erm-software/product/assess/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">risk assessment</a></strong> priorities).</p>
<p>So consider how achieving good governance can help you eliminate the vast majority of your cybersecurity risk by operationalizing the policies you already have in place across departments and out to third parties.</p>
<p>With the right <strong><a href="https://www.logicmanager.com/erm-software/product/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">governance solution</a></strong>, you should be able to operationalize any one of your policies within 90 days. If you operationalize your password policy across the enterprise, you’ve eliminated 81% of your cybersecurity risk.</p>
<p><em>This article was originally posted on <a href="https://www.logicmanager.com/erm-software/2019/03/28/eliminate-cybersecurity-vulnerabilities/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic" target="_blank" rel="nofollow noopener">LogicManager.com</a></em></p>
</div>
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</div>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/eliminate-81-of-your-cybersecurity-vulnerabilities-in-90-days/8790">Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>How can insurers stay relevant when insurance ceases to be mandatory?</title>
		<link>https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795</link>
				<comments>https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795#respond</comments>
				<pubDate>Tue, 19 Mar 2019 17:36:18 +0000</pubDate>
		<dc:creator><![CDATA[Christian Bieck]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>
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		<guid isPermaLink="false">http://www.ibm.com/blogs/insights-on-business/insurance/?p=39890</guid>
				<description><![CDATA[<p>Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of […]</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795">How can insurers stay relevant when insurance ceases to be mandatory?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8797 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/03/iStock-922106956.jpg 724w" sizes="(max-width: 300px) 100vw, 300px" />Insurance and insurers have been around for millennia, with modern insurance starting in the U.K. more than 300 years ago. For much of this time, incumbent insurers have been protected from competition by four big barriers: regulation, the law of large numbers, the trust nature of insurance, and, last but not least, the inertia of insurance customers.</p>
<p>But those barriers are starting to crumble. Autonomous cars, for example, might be a future vision. But nowadays, technology visions tend to become reality sooner than we thought; and when this one does, insurers will lose one of their biggest entry points into young customers’ wallets—auto insurance. With sufficient technical sophistication in self-driving systems and once a certain threshold of these cars is reached, legislators in most countries will consider banning human drivers. That will transform auto from a personal line to a commercial, fleet-based line, as it suddenly becomes more feasible to not own, but to share, a car. And the entity at fault becomes the software “behind the wheel,” not the passenger, anyway.</p>
<p>When that happens—which means when insurance stops being a mandatory requirement—how do insurers stay relevant to their customers? That is a question we explore in our latest <strong><a href="https://ibm.co/2FDVMu8" rel="noopener">IBM Institute for Business Value study, “Solving the customer relevance riddle: How AI-derived insights can help insurers deliver what customers really want”</a>.</strong></p>
<p>Already we are seeing non-traditional players carving out niches in the industry, <a href="https://www.ibm.com/thought-leadership/institute-business-value/report/insurtech">such as insurtechs</a>, adjacent businesses and digital giants. For insurers to thrive in this “big squeeze,” they need to reframe their roles to generate better business outcomes using customer segmentation and improved risk profiling. More importantly, they need to generate better customer outcomes with more individual tailoring and personalized communications, improved transparency and holistic solutions that actually meet customer needs.</p>
<p>How can insurers do this? The short answer is “by becoming a Cognitive Insurer.” That means shifting from “react and pay” to “predict and prevent.” The foundation for this is data—owned, bought or shared—the smart use of that data, and the associated technologies.</p>
<p>The technology that is likely to be the biggest differentiator in a Cognitive Insurer is artificial intelligence (AI). Insurers with a data-oriented mindset are heavily investing in AI, with more than 80% at least considering AI. Thirty-five percent of outperforming insurers are at least in the pilot stage with an AI project, with most insurers looking to bolster the top line with these projects—customer satisfaction being foremost on their minds.</p>
<p>Read more details, case studies and recommendations as to what steps to take to become a Cognitive Insurer in our latest study, <a href="https://ibm.co/2FDVMu8" rel="noopener"><strong>“Solving the customer relevance riddle: How AI-derived insights can help insurers deliver what customers really want.”</strong></a></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/how-can-insurers-stay-relevant-when-insurance-ceases-to-be-mandatory/8795">How can insurers stay relevant when insurance ceases to be mandatory?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>A brief primer on government disaster assistance in Canada</title>
		<link>https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772</link>
				<comments>https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772#respond</comments>
				<pubDate>Tue, 12 Mar 2019 20:37:25 +0000</pubDate>
		<dc:creator><![CDATA[Glenn McGillivray]]></dc:creator>
				<category><![CDATA[Uncategorized]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8772</guid>
				<description><![CDATA[<p>Nine provinces and one territory in the country have formal disaster assistance programs designed to help homeowners, renters, small business owners, not-for-profits and local governments recover after a loss event. Prince Edward Island, Yukon and Nunavut do not currently have<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772">A brief primer on government disaster assistance in Canada</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<div id="attachment_8773" style="width: 427px" class="wp-caption alignright"><img aria-describedby="caption-attachment-8773" class=" wp-image-8773" src="https://www.insblogs.com/wp-content/uploads/2019/03/Looking_downtown_from_Riverfront_Ave_Calgary_Flood_2013-300x199.jpg" alt="" width="417" height="248" /><p id="caption-attachment-8773" class="wp-caption-text">By Ryan L. C. Quan https://commons.wikimedia.org/w/index.php?curid=26873355</p></div>
<p class="p1">Nine provinces and one territory in the country have formal disaster assistance programs designed to help homeowners, renters, small business owners, not-for-profits and local governments recover after a loss event. Prince Edward Island, Yukon and Nunavut do not currently have formal programs and, thus, when they need access to funds as the result of a disaster, they retain a certain amount and apply for reimbursement for the rest using the formula outlined in the federal framework (see below).</p>
<p class="p1">While each provincial disaster assistance program has its own variations, the programs probably have more in common with each other – at least in principle – than not.</p>
<p class="p1">For the most part, provincial disaster assistance is intended to provide funding to those who suffered loss and damage from an event that is uninsurable (i.e. where private insurance is not reasonably or readily available). Some provinces use the term ‘uninsurable’ but leave out any further explanations, while others (like British Columbia) explicitly set out which hazards the program won’t cover (“Insurable damages in the private sector from<span class="Apple-converted-space">  </span>wildfires,<span class="Apple-converted-space">  </span>earthquakes , snow load, wind storms, sewer or sump pit back-up, water entry from above ground (including roofs, windows or other areas of the building), are NOT eligible for DFA.”)</p>
<p class="p1">Some provinces offer very specific lists of items they will cover, with only a few having no limits on replacement items (most will only cover basic or standard replacement models). For example, Manitoba offers coverage for:</p>
<p class="p1"><em>Homeowners:</em><span class="Apple-converted-space">  </span>Beds, essential furnishings, essential clothing and primary appliances (eg. furnaces, water heaters, fridges, stoves, computers and televisions).</p>
<p class="p1"><em>Business owners:</em> Supplies, essential work clothing and other necessities.</p>
<p class="p1"><em>Agricultural claims:</em> Livestock fencing, staged and stored crop and some field erosion. DFA may also help cover the cost of clean-up, repairs and temporary relocation.</p>
<p class="p1">Most programs offer very specific payout caps, while only a couple do not.</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td1" valign="top"></td>
<td class="td2" valign="top">
<p class="p1"><b>Coverage limits</b></p>
</td>
<td class="td3" valign="top">
<p class="p1"><b>Item limits</b></p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">British Columba</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $300,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Alberta</p>
</td>
<td class="td2" valign="top">
<p class="p1">No cap</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Saskatchewan</p>
</td>
<td class="td2" valign="top">
<p class="p1">95% of eligible damage to $240,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Manitoba</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $240,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Ontario</p>
</td>
<td class="td2" valign="top">
<p class="p1">90% of eligible damage to $250,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Quebec</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $150,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">New Brunswick</p>
</td>
<td class="td2" valign="top">
<p class="p1">100% of eligible damage to $120,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Nova Scotia</p>
</td>
<td class="td2" valign="top">
<p class="p1">100% of eligible damage to $80,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Prince Edward Island*</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Newfoundland & Labrador</p>
</td>
<td class="td2" valign="top">
<p class="p1">No cap</p>
</td>
<td class="td3" valign="top">
<p class="p1">No item limits</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Yukon</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Northwest Territories</p>
</td>
<td class="td2" valign="top">
<p class="p1">80% of eligible damage to $100,000</p>
</td>
<td class="td3" valign="top">
<p class="p1">Basic models</p>
</td>
</tr>
<tr>
<td class="td1" valign="top">
<p class="p1">Nunavut</p>
</td>
<td class="td2" valign="top">
<p class="p1">No DFA program</p>
</td>
<td class="td3" valign="top"></td>
</tr>
</tbody>
</table>
<p class="p3"><em><span class="s1">* </span>The PEI Emergency Measures Organization is currently working on formalizing a provincial framework which aligns with the other Atlantic Provinces.</em></p>
<p> </p>
<p class="p1">Virtually all provincial programs are very explicit about covering primary residences only (like Saskatchewan, Manitoba and Ontario).</p>
<p class="p1">Some programs require that local governments apply to their respective provincial government to get recognized for assistance before individuals can apply themselves (like Saskatchewan and Alberta), while others allow applications by anyone once the province declares an event to be eligible for assistance. British Columbia and New Brunswick are examples of two provinces that provide a running list of active eligible disasters on their respective disaster assistance web pages.</p>
<p class="p1">Here are links to the major provincial disaster assistance programs in Canada:</p>
<p class="p1"><a href="https://www2.gov.bc.ca/gov/content/safety/emergency-preparedness-response-recovery/emergency-response-and-recovery/disaster-financial-assistance" target="_blank" rel="noopener"><b>British Columbia – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="http://www.aema.alberta.ca/assistance-and-recovery-support" target="_blank" rel="noopener"><b>Alberta – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.saskatchewan.ca/residents/environment-public-health-and-safety/access-funding-through-the-provincial-disaster-assistance-program" target="_blank" rel="noopener"><b>Saskatchewan – Provincial Disaster Assistance Program (PDAP)</b></a></p>
<p class="p1"><a href="https://www.gov.mb.ca/emo/recover/home/dfa_home.html" target="_blank" rel="noopener"><b>Manitoba – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.ontario.ca/page/apply-disaster-recovery-assistance" target="_blank" rel="noopener"><b>Ontario – Disaster Recovery Assistance for Ontarians (DRAO)</b></a></p>
<p class="p1"><a href="https://www.securitepublique.gouv.qc.ca/en/civil-protection/financial-disaster-victims.html" target="_blank" rel="noopener"><b>Quebec – Financial Assistance For Disaster Victims</b></a></p>
<p class="p1"><a href="https://www2.gnb.ca/content/gnb/en/news/public_alerts/report_damages.html" target="_blank" rel="noopener"><b>New Brunswick – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://novascotia.ca/dma/emo/disaster_financial_assistance/program_limits.asp" target="_blank" rel="noopener"><b>Nova Scotia – Disaster Financial Assistance (DFA)</b></a></p>
<p class="p1"><a href="https://www.gov.nl.ca/fes/emo/DFAPPolicyStatement.pdf" target="_blank" rel="noopener"><b>Newfoundland & Labrador – Disaster Financial Assistance Program (NL-DFAP)</b></a></p>
<p class="p1"><a href="https://www.maca.gov.nt.ca/en/services/disaster-financial-assistance" target="_blank" rel="noopener"><b>Northwest Territories – Disaster Financial Assistance</b></a></p>
<p> </p>
<p class="p1"><b>Federal Disaster Financial Assistance Arrangements (DFAAs)</b></p>
<p class="p1">The provision of federal disaster assistance seems to be where most people get confused about how disaster assistance works in Canada.</p>
<p class="p1">As noted on Public Safety Canada’s website, “In the event of a large-scale natural disaster, the Government of Canada provides financial assistance to provincial and territorial governments through the Disaster Financial Assistance Arrangements (DFAA), administered by Public Safety Canada.<span class="Apple-converted-space">  </span>When response and recovery costs exceed what individual provinces or territories could reasonably be expected to bear on their own, the DFAA provide the Government of Canada with a fair and equitable means of assisting provincial and territorial governments.”</p>
<p class="p1">Federal disaster assistance is paid by the federal government to provinces and territories and not directly to individuals or non-governmental entities. One of the most common misconceptions is that individuals can apply directly to the federal government for assistance, but this is not the case.</p>
<p class="p1">DFAA work on a cost sharing basis and uses a formula. For the period January 1, 2019 to December 31, 2019, the formula is as follows:</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td4" valign="top">
<p class="p1"><b>Eligible provincial expense thresholds</b></p>
<p class="p1"><b>(per capita of population)</b></p>
</td>
<td class="td4" valign="top">
<p class="p1"><b>Government of Canada share</b></p>
<p class="p1"><b>(percentage)</b></p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">First $3.19</p>
</td>
<td class="td4" valign="top">
<p class="p1">0</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Next $6.39</p>
</td>
<td class="td4" valign="top">
<p class="p1">50</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Next $6.39</p>
</td>
<td class="td4" valign="top">
<p class="p1">75</p>
</td>
</tr>
<tr>
<td class="td4" valign="top">
<p class="p1">Remainder</p>
</td>
<td class="td4" valign="top">
<p class="p1">90</p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p class="p1">Thus, the DFAAs work in a similar manner to reinsurance.</p>
<p class="p1">Public Safety Canada provides the following as an example of how the DFAAs would work for a disaster in a province with a population of 1 million where the total eligible expenses for responding to and recovering from a disaster are $20 million:</p>
<p> </p>
<table class="t1" cellspacing="0" cellpadding="0">
<tbody>
<tr>
<td class="td5" valign="top">
<p class="p1"><b>Eligible Expenditures</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>Provincial or Territorial Government</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>Government of Canada</b></p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">First $3.19 per capita (100% provincial/territorial)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,190,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">Nil</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Next $6.39 per capita (50%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,195,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,195,000</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Next $6.39 per capita (75%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$1,597,500</p>
</td>
<td class="td5" valign="top">
<p class="p1">$4,792,500</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1">Remainder (90%)</p>
</td>
<td class="td5" valign="top">
<p class="p1">$403,000</p>
</td>
<td class="td5" valign="top">
<p class="p1">$3,627,000</p>
</td>
</tr>
<tr>
<td class="td5" valign="top">
<p class="p1"><b>TOTAL</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>$8,385,500</b></p>
</td>
<td class="td5" valign="top">
<p class="p1"><b>$11,641,500</b></p>
</td>
</tr>
</tbody>
</table>
<p> </p>
<p class="p1"><b>Disaster assistance and overland flooding</b></p>
<p class="p1">As noted at the outset, provincial disaster assistance is intended to provide funding for uninsurable losses. As such, and because many hazards are insurable in Canada, the bulk of provincial and federal disaster assistance paid out historically has been for overland flood. But this, it appears, will change.</p>
<p class="p1">With the introduction of overland flood insurance in Canada in February 2015, and with several companies now offering the coverage, some provincial disaster assistance programs have made it clear that the writing is on the wall for the payment of disaster assistance for overland flood.</p>
<p class="p1">On the webpage for its disaster assistance program Alberta, for instance, notes that “Because the DRP [Disaster Recovery Program] provides assistance for damages that are considered uninsurable, overland flood insurance may soon impact eligibility for DRP assistance.”</p>
<p class="p1">Likewise, Saskatchewan notes that “…insurance providers recently started to offer policies that protect homeowners from overland flooding. The Government of Saskatchewan advises all property owners to obtain adequate coverage for their property.” The province has made available an Overland Flood Insurance fact sheet and advises property owners to contact their insurance company about flood coverage.</p>
<p class="p1">And in British Columbia, <a href="https://www2.gov.bc.ca/assets/gov/public-safety-and-emergency-services/emergency-preparedness-response-recovery/embc/dfa/residential_flood_insurance.pdf" target="_blank" rel="noopener">a letter was issued</a> by Emergency Management BC (EMBC) in May 2016 outlining the development of the burgeoning flood insurance market in Canada. The letter warns: “Over the next several years as additional insurance options roll out, EMBC will apply discretion in how it determines eligibility. For example, a homeowner or tenant would not be expected to amend their existing policy as soon as overland flood insurance becomes available. But, DFA may be denied if overland flood insurance was available on renewal and they chose not to purchase it.”</p>
<p class="p1">There is an intricate, often complicated relationship between the existence or availability of private insurance and the provision of provincial disaster assistance. This relationship has taken a few new twists with the introduction of overland flood insurance in the country. And, so, it is worth keeping on eye on how provincial disaster assistance programs deal with the proliferation of overland flood insurance products and how they decide what the impact will be on the provision of disaster assistance.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/uncategorized/a-brief-primer-on-government-disaster-assistance-in-canada/8772">A brief primer on government disaster assistance in Canada</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>How to Tackle The Top Three Risks in the Energy Industry</title>
		<link>https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767</link>
				<comments>https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767#respond</comments>
				<pubDate>Fri, 08 Mar 2019 14:29:06 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8767</guid>
				<description><![CDATA[<p>For the first time, reputation risk, organizational culture, and cybersecurity have all landed among the top five risks in the energy industry. How can energy companies tackle all of these risks without wasting time and money on additional resources? This<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767">How to Tackle The Top Three Risks in the Energy Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
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<p><img class="size-medium wp-image-8768 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/03/IRMI-ERIC-2019-01-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />For the first time, reputation risk, organizational culture, and cybersecurity have all landed among the top five risks in the energy industry. How can energy companies tackle all of these risks without wasting time and money on additional resources?</p>
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<p>This year at my <a href="https://www.irmi.com/conferences/energy-risk-insurance-conference"><strong>IRMI Energy Risk and Insurance Conference</strong></a> session, I showed attendees how they could tackle all three of these top-priority risks with enterprise risk management.</p>
<p>The key is adopting a truly integrated approach to risk management. The truth is, energy companies already collect much of the information they need to build a mature risk management program. More often than not, however, organizations fail to engage all departments and levels of the organization to share this information cross-functionally and to the right levels to make decisions.</p>
<p>During my session at 2019 IRMI ERIC, I walked attendees through, step-by-step, how their organizations can implement a risk-based approach to build a risk culture and cybersecurity program that mitigates reputational risks before they occur.</p>
<p>Whether you made it to this year’s conference or not, I wanted to share some of my takeaways from the session, as well as some tools I presented to facilitated a risk-based approach.</p>
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<h3>Emerging Risks in the Energy Industry</h3>
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<p>According to the report <strong><a href="https://www.protiviti.com/US-en/insights/protiviti-top-risks-survey">“Executive Perspectives on Top Risks 2019”</a></strong>, energy and utility companies rated organizational risk to have a ‘significant impact’ on operations in response to the following statement: “Our organization’s culture may not sufficiently encourage the timely identification and escalation of risk issues that have the potential to significantly affect our core operations and achievement of strategic objectives.”</p>
<p>Interestingly enough, when asked about reputational risk such as social media, energy and utility companies responded with a ‘potential impact’ rating. What every company must realize is that in a <a href="https://www.logicmanager.com/erm-software/2018/04/26/see-through-economy-risk-management/"><strong>See-Through Economy</strong></a>, social media is directly tied to reputational risk, which is in turn tied to the achievement of strategic objectives, and often related to cyber risk.</p>
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<div id="attachment_126849" style="width: 496px" class="wp-caption aligncenter"><img aria-describedby="caption-attachment-126849" class="wp-image-126849" src="https://www.logicmanager.com/wp-content/uploads/2019/03/Deepwater_Horizon_offshore_drilling_unit_on_fire_2010.jpg" alt="" width="486" height="364" /><p id="caption-attachment-126849" class="wp-caption-text">Deepwater Horizon Drilling Unit on Fire, Wikipedia</p></div>
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<p>To drive home the importance of these emerging risks, I revisited some of the biggest scandals in the energy industry, such as the <a href="https://www.boston.com/news/local-news/2018/10/11/ntsb-preliminary-report-merrimack-valley-gas-explosions"><strong>Merrimack Valley Gas Explosion</strong>,</a> the <a href="https://www.businesswire.com/news/home/20181205005825/en/Lieff-Cabraser-Edelson-PC-File-Class-Action%20Unsafe%20infrastructure"><strong>PG&E electric fires</strong>,</a> and of course, the<strong><a href="https://www.logicmanager.com/erm-software/2016/06/02/risk-management-negligence-accident/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> Plains All American Pipeline Spill.</a></strong> Each of these mishaps carried immense reputational risk, and more importantly, were 100% preventable because they stemmed from severe negligence.</p>
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<h3>Mitigate Energy Risks with the Right Tools</h3>
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<p>So how can you prevent negligence and corporate mishaps in the energy industry?</p>
<p>It all starts with having the right tools. At <strong><a href="https://www.irmi.com/conferences/energy-risk-insurance-conference">IRMI ERIC</a></strong>, I presented two physical tools attendees could use every day to facilitate a risk-based approach.</p>
<p>First, I showed them LogicManager’s <strong><a href="https://www.logicmanager.com/download-risk-based-approach-wheel/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Risk-Based Approach Wheel</a></strong>, which gives great visual insight into the activities performed during an end-to-end, iterative ERM process. You can download the Wheel <strong><a href="https://www.logicmanager.com/download-risk-based-approach-wheel/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">here.</a></strong></p>
<p>I also introduced them to another one of my favorite tools – the <a href="https://www.logicmanager.com/download-risk-based-translator/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>Risk-Based Translator</strong></a>. Often times, organizations have a lot of trouble communicating about risk because each department has their own secret lingo of sorts. Download the Translator <a href="https://www.logicmanager.com/download-risk-based-translator/"><strong>here</strong></a> to see how you can create a common language across departments.</p>
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<p>One question I got from an attendee was how to actually engage people. I answered with one of my favorite approaches: get someone in the C-suite in your corner. Try giving a heads up to a risk-minded C-suite executive that you’ll be sending out a risk assessment to key departments. Ask him or her to send out an email to everyone involved, directly thanking those who completed the assessment and expressing how important it is for the company. Then, more people will follow suit and complete the assessment!</p>
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<h3>Tackling Cyber Risk in the Energy Industry</h3>
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<p>The best way to get a risk-based approach up and running is to take it one initiative at a time. In my presentation, I focused on one of the top risks in the energy industry: cybersecurity. This was a great example to use, not only because of its prevalence in the industry, but because it is deeply connected to reputational and organizational risk, as you can imagine.</p>
<p>Just recently, in fact, the North American Electric Reliability Corporation (<a href="https://www.nerc.com/"><strong>NERC</strong></a>) fined an energy company <strong><a href="https://www.secureworldexpo.com/industry-news/4-things-to-learn-from-cybersecurity-failures">$10 million</a></strong> for over 100 physical and cyber security violations to the regulatory authority’s Critical Infrastructure Protection (<a href="https://www.nerc.com/pa/Stand/Pages/CIPStandards.aspx"><strong>CIP</strong></a>) standards. It’s the biggest fine NERC has ever levied for CIP violations.</p>
<p>Complying with a standard such as CIP is a huge, cross-functional effort in and of itself. When you come to terms with the fact that compliance is the minimum operating standard, protecting your organization from cyber risk becomes an even larger task.</p>
<p><img class="size-full wp-image-126873 aligncenter" src="https://www.logicmanager.com/wp-content/uploads/2019/03/2019-IRMI-Presentation-Chart.png" alt="" width="908" height="310" /></p>
<p>At IRMI ERIC 2019, I advised my audience to take the following steps:</p>
<ol>
<li>Break down a standard like NERC CIP into actionable, bite-sized line items and determine which departments they impact</li>
<li>Pick one of these line items, such as required access controls and identify where your organization is excelling and where there are gaps by administering <strong><a href="https://www.logicmanager.com/erm-software/product/assess/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">standardized risk assessments</a></strong> to impacted departments</li>
<li>Once this information is collected, start filling in the gaps with new <a href="https://www.logicmanager.com/erm-software/product/mitigate/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>mitigation activities</strong></a> like dual authentication procedures, password vaults, entitlement policies, etc.</li>
<li>Implement ongoing <a href="https://www.logicmanager.com/erm-software/product/monitor/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>monitoring activities</strong></a> like privileged user access reviews; consider automating these processes with regularly recurring reminders and notifications</li>
<li>Make sure there is a standardized method for <strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">reporting incidents</a></strong> like security and non-performance events</li>
</ol>
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<p>As always, I would also recommend doing a health check of your ERM program and processes. The best way to do this is by taking the RIMS Risk Maturity Model, which has been recommended by the American Petroleum Institute. You can <strong><a href="http://riskmaturitymodel.org/">take the free Risk Maturity Model assessment here</a></strong> to see how your program stacks up against industry standards.</p>
<p>The energy industry, like many others, is coming to terms with the fact that risks are interdependent. If risks are intertwined, then it can only follow that departments must also be intertwined, and must work together to protect their organization and prevent risks from blooming into disaster through an integrated approach.</p>
<p><em>This article was originally posted on <a href="https://www.logicmanager.com/erm-software/2019/03/06/top-three-risks-energy-industry/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/how-to-tackle-the-top-three-risks-in-the-energy-industry/8767">How to Tackle The Top Three Risks in the Energy Industry</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>What Can Banks and All Companies Learn from Apple’s Latest Glitch?</title>
		<link>https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759</link>
				<comments>https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759#respond</comments>
				<pubDate>Fri, 22 Feb 2019 14:31:57 +0000</pubDate>
		<dc:creator><![CDATA[Steven Minsky]]></dc:creator>
				<category><![CDATA[Enterprise Risk Management]]></category>
		<category><![CDATA[Events]]></category>
		<category><![CDATA[enterprise risk management]]></category>
		<category><![CDATA[Incident Management]]></category>
		<category><![CDATA[risk]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8759</guid>
				<description><![CDATA[<p>Even a $1 trillion company cannot hide in the See-Through Economy. After a fourteen-year-old boy discovered a serious bug in Apple’s group FaceTime feature, his mother e-mailed, faxed, and tweeted the report to Apple. However, it wasn’t until after her<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759">What Can Banks and All Companies Learn from Apple’s Latest Glitch?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<div class="fusion-fullwidth fullwidth-box nonhundred-percent-fullwidth non-hundred-percent-height-scrolling">
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<p><img class="size-medium wp-image-8760 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-300x199.png" alt="" width="300" height="199" srcset="https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-300x199.png 300w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-768x508.png 768w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-1024x678.png 1024w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-250x165.png 250w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01-600x397.png 600w, https://www.insblogs.com/wp-content/uploads/2019/02/equifax-hack-01.png 1417w" sizes="(max-width: 300px) 100vw, 300px" />Even a $1 trillion company cannot hide in the See-Through Economy. After a fourteen-year-old boy discovered a serious bug in Apple’s group FaceTime feature, his mother e-mailed, faxed, and tweeted the report to Apple. However, it wasn’t until after her tweet went viral that the bug was disabled. How could Apple have responded more efficiently and avoided this reputational risk?</p>
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<p>Most Apple users are familiar with FaceTime, Apple’s video chatting software. The feature had recently been upgraded, so that users could loop multiple people into a group FaceTime.<strong><a href="https://www.cnn.com/2019/01/29/tech/facetime-bug-teen-discovery/index.html"> However, the feature has been disabled as a result of a major glitch</a></strong> discovered a few weeks ago by fourteen-year-old Grant Thompson. The serious privacy flaw could force a user’s device to pick-up an incoming group FaceTime even if they declined the call. The bug even enabled access to the recipient’s camera if they interacted with their device’s hardware.</p>
<p>Upon discovering the significant security and privacy flaw, Thompson’s mother immediately e-mailed a bug report and video to Apple on their support site. She also called and tweeted at CEO Tim Cook and even faxed a letter using her law firm’s letterhead. Despite her efforts, after several weeks the incident report had still not been processed. Thompson didn’t hear back from Apple until after national media outlets broke the news about the FaceTime glitch and traced the report back to her original tweets. Ms. Thompson’s tweet on the other hand, was escalated to the public, instantly. This is an example of the<strong><a href="https://www.logicmanager.com/erm-software/2018/04/26/see-through-economy-risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> See-Through Economy</a></strong> at work, which encapsulates the shift towards transparency and accountability brought on by social media and technology. Before Apple could formally acknowledge the issue, the public had been made well-aware that their privacy was at risk.</p>
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<h3>Reputational Risk in a See-Through Economy</h3>
<p>When there is not a clear path of communication to the company, consumers are empowered by social media to voice their issues. Because an enterprise-wide risk management process was not in place, Apple could not respond and resolve the issue before Ms. Thompson’s tweet went viral on twitter. As a result, the glitch not only exposed Apple to major privacy violation risks, but also to reputational risk.</p>
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<p>Companies can no longer effectively manage reputational risk after the fact, so they must take a proactive <a href="https://www.logicmanager.com/erm-software/product/risk-based-process/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><strong>risk-based approach</strong> </a>to ensure the risk does not occur in the first place. Customer-facing<strong><a href="https://www.logicmanager.com/incident-management-software-demo/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> incident management software </a></strong>is essential to handling corporate mishaps. With connected incident management tools, organizations can immediately resolve issues through an efficient workflow that directs the incident to the appropriate parties.</p>
<p>Difficulties  in the reporting process prevented the issue from being resolved sooner. Although the tech giant has a bug reporting channel, it is available only to designated specialists in the tech or security field. Given there was no public-facing channel for users to report security and privacy issues, Ms. Thompson used traditional methods including calling their support line, faxing, and tweeting. Unfortunately, the support line she reached was for traditional product support, which was not prepared for escalating security and privacy issues. Once her tweet went viral, Apple’s social media team was able to escalate the issue to the appropriate people; however, the bug publicly demonstrated Apple’s slow response and lack of escalation process.</p>
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<h3>Businesses Need to Revamp Customer-Facing Incident Management</h3>
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<div class="fusion-separator fusion-full-width-sep sep-none">Without enterprise risk management, reporting, responding, and remediating issues is often ineffective and time-consuming. As I previously mentioned, Apple’s reporting process left no options available for Ms. Thompson, who stated “It’s exhausting and exasperating. It’s very poorly set up especially for the average citizen. I feel like I went above and beyond.”</div>
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<p>Apple is not the only corporation who has struggled with implementing customer-facing incident management. As a result of the change in <strong><a href="https://www.wsj.com/articles/rules-designed-to-catch-terrorists-cost-this-unsuspecting-customer-her-bank-account-1531495802">“Know Your Customer”</a></strong> laws, it has been a challenge for financial institutions to execute anti-money laundering regulations properly. <strong><a href="https://soundcloud.com/logicmanager/risk-management-podcast-citibank-michigan-state-larry-nassar">Citibank</a></strong> recently rolled out a compliance program designed to protect customers and the company from illegal financial activity. However, what was initially designed as a program intended to catch terrorists has left multiple innocent customers with frozen bank accounts and zero notice. Without a customer-facing website to escalate issues, the remediation process is time-consuming with significant barriers to reach the appropriate employees.</p>
<p>Citibank is not unlike other banks, financial institutions, and most companies. While many have internal whistle-blower hotlines to report misdeeds, very few companies have reporting channels accessible to customers. Surprisingly, many financial institutions even require physical mail as a part of their complaint reporting process. These channels primarily serve as a means for customers to feel “their voices have been heard”. Often times, financial institutions do not have the management processes to identify and filter risk, fraud and misdeed reported from outside the organization. As a result, the resolution process is ineffective and complaints are typically aggregated over time serving no real purpose over than for process improvement.</p>
<p>With effective enterprise risk management in place, customer responses for a variety of issues can follow a clear and cost-effective path to resolution. Customer-facing incident management offers customers easily-accessible channels to escalate their incident reports. In the See-Through economy, risk transcends every industry. Regardless of what the incident is, be it a major software bug or innocent customers’ bank accounts being inadvertently frozen, incident management and reporting are essential components of<strong><a href="https://www.logicmanager.com/grc-software/risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> effective risk management</a>.</strong></p>
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<h3>Take the Steps to Improve Your Incident Management Program:</h3>
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<p>Without effective<strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"> incident management tools, </a></strong>incident reporting can be a large source of liability. Having a disconnected reporting process is not only a disservice to the customers, but can negatively impact the company as well with exposure for negligence.</p>
<p>With the help of an <strong><a href="https://www.logicmanager.com/grc-software/risk-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">enterprise risk management</a></strong> system, you can stay ahead of the curve in the event of an incident. With <strong><a href="https://www.logicmanager.com/grc-software/incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">incident reporting software</a></strong><strong>,</strong> you can give customers an outlet to easily submit issues that are immediately forwarded through a remediation workflow. While social media will still be at customers’ finger tips, you can ensure they are satisfied with a seamless and efficient resolution process. <strong><a href="https://www.logicmanager.com/incident-management-software-demo/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">Incident management software</a></strong> will also give you a better understanding of why, when, and where incidents are happening, so you can prevent them from recurring in the future. Implementing the following pointers will help to improve your incident management program, so you can avoid ending up like the aforementioned companies.</p>
<ul>
<li><b>Front-line reporting</b>: Empower customers and employees to submit incidents in customized forms that collect all the information your organization will need to engage the appropriate business units  in the resolution process.</li>
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<li><b>Automate Workflows:</b> Design a workflow for each incident to get it routed to the right people across business silos to resolve it efficiently and cost-effectively.</li>
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<li><b>Centralize Incidents: With all departments in one system, they can easily communicate with one another about issues that arise and work towards a solution.</b></li>
</ul>
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<li><b>Generate Reports:</b> With all of your incident information in one place, you’ll be able to uncover trends within your data. Then, implement controls to prevent future incidents.</li>
</ul>
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<h4>Download our Incident Management eBook</h4>
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<p>Check out our complimentary eBook, <a href="https://www.logicmanager.com/ebook-risk-based-incident-management/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic"><b>“How to Take a Risk-Based Approach to Incident Management,”</b></a> for more information on how to resolve issues and engage the right people in the right amount of time.</p>
<p><strong>About the Author: Steven Minsky</strong></p>
<p>Steven is a recognized thought leader in ERM, CEO of LogicManager, and co-author of the RIMS Risk Maturity Model. Follow him on Twitter at @SteveMinsky</p>
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<p><em>This article was originally published on <a href="http://LogicManager.com/?utm_source=InsBlogs&utm_medium=referral&utm_campaign=Referral%20Traffic">LogicManager.com</a></em></p>
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<p>The post <a rel="nofollow" href="https://www.insblogs.com/erm/what-can-banks-and-all-companies-learn-from-apples-latest-glitch/8759">What Can Banks and All Companies Learn from Apple’s Latest Glitch?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>Continued help by insurers in Fort McMurray Alberta</title>
		<link>https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746</link>
				<comments>https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746#respond</comments>
				<pubDate>Fri, 15 Feb 2019 16:11:57 +0000</pubDate>
		<dc:creator><![CDATA[Steve Kee]]></dc:creator>
				<category><![CDATA[Catastrophe]]></category>
		<category><![CDATA[Home]]></category>
		<category><![CDATA[Natural Disasters]]></category>
		<category><![CDATA[Property Restoration]]></category>
		<category><![CDATA[Alberta]]></category>
		<category><![CDATA[Fort McMurray wildfire]]></category>
		<category><![CDATA[home insurance]]></category>

		<guid isPermaLink="false">https://www.insblogs.com/?p=8746</guid>
				<description><![CDATA[<p>Insurance Bureau of Canada attempted to respond to a recent piece on the Fort McMurray Alberta rebuild following the fire in 2016. The magazine has not printed the response. The following is IBC’s position. The recent article by Nicholas Köhler<span class="ellipsis">…</span></p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746">Continued help by insurers in Fort McMurray Alberta</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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								<content:encoded><![CDATA[<p><img class="wp-image-8753 size-medium alignright" src="https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-768x512.jpg 768w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/02/15435308-1.jpg 800w" sizes="(max-width: 300px) 100vw, 300px" /></p>
<p>Insurance Bureau of Canada attempted to respond to a recent piece on the Fort McMurray Alberta rebuild following the fire in 2016. The magazine has not printed the response. The following is IBC’s position.</p>
<p>The recent article by <a href="https://www.macleans.ca/news/canada/fort-mcmurray-fire-insurance-two-years-later/">Nicholas Köhler on the Fort McMurray rebuild (Maclean’s, January 23, 2019)</a> doesn’t provide a full picture of the extensive work that has taken place in Fort McMurray since the 2016 wildfire. The devastating fires that swept through the community forced the largest wildfire evacuation in Alberta’s history. Close to 90,000 people were forced to flee their homes. This was a traumatic situation for Fort McMurray residents, and insurers acted immediately the moment the fire started.</p>
<p>Residents, governments, emergency officials, non-profits and insurers have all done an incredible amount of work to get the community back on its feet. However, while almost all insurance claims are closed and most residents are back into their homes, the work is not yet done. <a href="http://www.ibc.ca/ab/">Insurance Bureau of Canada (IBC)</a> understands that there are some families still working through claims with their insurers. This is never the preferred situation.</p>
<p>Policyholders with outstanding issues are encouraged to call IBC’s Consumer Information Centre at 1-844-2ask-IBC or the <a href="https://www.alberta.ca/insurance.aspx">Alberta Superintendent of Insurance</a> at 780-643-2237 for information about the dispute resolution process and other tools that may be available to them. The insurance industry will continue to assist residents until 100% of the claims are closed and families are back in their homes. We are here to help.</p>
<p>Sincerely,</p>
<p><a href="http://www.ibc.ca/nt/about-us/leadership/vp-western">Celyeste Power</a><br />
Vice-President, Western<br />
Insurance Bureau of Canada</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/catastrophe/continued-help-by-insurers-in-fort-mcmurray-alberta/8746">Continued help by insurers in Fort McMurray Alberta</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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		<title>What’s Happening With B.C. Auto Insurance?</title>
		<link>https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727</link>
				<comments>https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727#respond</comments>
				<pubDate>Sun, 20 Jan 2019 16:35:00 +0000</pubDate>
		<dc:creator><![CDATA[Willie Handler]]></dc:creator>
				<category><![CDATA[Auto]]></category>

		<guid isPermaLink="false">http://www.insblogs.com/?guid=2f02e7655a35fac645abfefb11ec591a</guid>
				<description><![CDATA[<p>Some of my Ontario readers might be wondering what is happening in B.C. and their auto insurance reforms.When the NDP government was formed, they inherited quite a mess. Auti insuracne costs were rising rapidly and rates increases had not kept up. The ...</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727">What’s Happening With B.C. Auto Insurance?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
]]></description>
								<content:encoded><![CDATA[<p><img class="size-medium wp-image-8730 alignright" src="https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-300x200.jpg" alt="" width="300" height="200" srcset="https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-300x200.jpg 300w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-250x167.jpg 250w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252-600x400.jpg 600w, https://www.insblogs.com/wp-content/uploads/2019/01/iStock-844910252.jpg 724w" sizes="(max-width: 300px) 100vw, 300px" />Some of my Ontario readers might be wondering what is happening in B.C. and their auto insurance reforms.</p>
<p>When the NDP government was formed, they inherited quite a mess. Auto insurance costs were rising rapidly and rates increases had not kept up. The previous government had also drained the public insurer, the Insurance Corporation of British Columbia (ICBC), of surplus funds from previous years. As a result, the ICBC was running losses in excess of $1 billion.</p>
<p>The average premium in B.C. is now about $200 more than those in Ontario. Yes, it’s hard to believe that there could be a mess worse than Ontario. The ICBC has been unfairly painted the villain. The private insurance industry is trying to use B.C. as an example of how government-run insurance doesn’t work. That’s just not true. In this case, competition could not possibly resolve the province’s insurance problems.</p>
<p>British Columbia is the only jurisdiction that still has a full tort system. In other words, their system is much like Ontario’s back in the 1980s with growing settlements and high legal costs.. The ICBC and B.C. government have determined that tort access needs to be restricted.</p>
<p>Beginning April 1 of this year, there will be a minor injury cap of $5,500 for pain and suffering awards in B.C., similar to what a number of other Canadian jurisdiction have done. At the same time, no-fault accident benefit coverage will be expanded. B.C. is also updating how it calculates rates by providing discounts to safe drivers and penalizing those who cause accidents. A change that is long overdue.</p>
<p>The ICBC expects to save about $1 billion dollars from these reforms. It will interesting to see if their no-fault model will work. If it doesn’t, the next step may be to eliminate tort altogether and design a pure-no-fault system.</p>
<p>The post <a rel="nofollow" href="https://www.insblogs.com/auto/whats-happening-with-b-c-auto-insurance/8727">What’s Happening With B.C. Auto Insurance?</a> appeared first on <a rel="nofollow" href="https://www.insblogs.com">insBlogs</a>.</p>
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Diag| Considering item [https://www.insblogs.com/?p=8826] "Flexible Risk Assessments and Effective Reporting in the Banking Industry"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'https://www.insblogs.com/?p=8826')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [https://www.insblogs.com/?p=8826] "Flexible Risk Assessments and Effective Reporting in the Banking Industry" is a duplicate of an existing post.
Diag| Considering item [http://www.insblogs.com/?guid=e0f5021f85e69380d0289f5b5d45ffac] "Ontario Government Takes a Different Approach to Auto Insurance Reforms"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'http://www.insblogs.com/?guid=e0f5021f85e69380d0289f5b5d45ffac')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [http://www.insblogs.com/?guid=e0f5021f85e69380d0289f5b5d45ffac] "Ontario Government Takes a Different Approach to Auto Insurance Reforms" is a duplicate of an existing post.
Diag| Considering item [https://www.insblogs.com/?p=8803] "P&C Brokerage Industry – Let’s talk Management Buy-ins"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'https://www.insblogs.com/?p=8803')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [https://www.insblogs.com/?p=8803] "P&C Brokerage Industry – Let’s talk Management Buy-ins" is a duplicate of an existing post.
Diag| Considering item [https://www.insblogs.com/?p=8790] "Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'https://www.insblogs.com/?p=8790')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [https://www.insblogs.com/?p=8790] "Eliminate 81% of Your Cybersecurity Vulnerabilities in 90 Days" is a duplicate of an existing post.
Diag| Considering item [http://www.ibm.com/blogs/insights-on-business/insurance/?p=39890] "How can insurers stay relevant when insurance ceases to be mandatory?"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'http://www.ibm.com/blogs/insights-on-business/insurance/?p=39890')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [http://www.ibm.com/blogs/insights-on-business/insurance/?p=39890] "How can insurers stay relevant when insurance ceases to be mandatory?" is a duplicate of an existing post.
Diag| Considering item [https://www.insblogs.com/?p=8772] "A brief primer on government disaster assistance in Canada"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'https://www.insblogs.com/?p=8772')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [https://www.insblogs.com/?p=8772] "A brief primer on government disaster assistance in Canada" is a duplicate of an existing post.
Diag| Considering item [https://www.insblogs.com/?p=8767] "How to Tackle The Top Three Risks in the Energy Industry"
Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'https://www.insblogs.com/?p=8767')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
Diag====| Item [https://www.insblogs.com/?p=8767] "How to Tackle The Top Three Risks in the Energy Industry" is a duplicate of an existing post.
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Diag====| Item [https://www.insblogs.com/?p=8759] "What Can Banks and All Companies Learn from Apple’s Latest Glitch?" is a duplicate of an existing post.
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Diag====| Item [https://www.insblogs.com/?p=8746] "Continued help by insurers in Fort McMurray Alberta" is a duplicate of an existing post.
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Diag========| SQL: SELECT   wp_posts.ID, wp_posts.guid, wp_posts.post_modified_gmt, wp_posts.post_name FROM wp_posts  WHERE 1=1  AND ((guid = 'http://www.insblogs.com/?guid=2f02e7655a35fac645abfefb11ec591a')) GROUP BY wp_posts.ID ORDER BY wp_posts.post_date DESC 
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