Posted on May 09, 2012 | | Categories: Data Security
An injury that doesn't happen needs no treatment. An emergency that doesn't occur requires no response. An illness that doesn't develop demands no remedy. The best way to stay safe ½ is to avoid getting into trouble in the first place. That requires planning, training, leadership, good judgment, and accepting responsibility--in short, risk management.
-- Boy Scout Field Book
Insurance companies are the experts at analyzing and managing risk. They identify, quantify and set pricing based on the calculated costs of risk. Naturally, the higher the perceived risk, the higher the cost to mitigate the potential losses.
Yet here is the irony. While those in the insurance industry excel at evaluating risk management for their clients, they often neglect risk mitigation within their own operation.
The insurance industry collects and analyzes overwhelming amounts of data. This often sensitive and confidential information becomes the basis upon which many critical decisions are made, and which produces the competitive advantage to provide better policies, prices, and solutions to the market.
All of this data, both historical and cutting-edge, is truly the lifeblood of the insurance industry. Therefore, the astute management and protection of this data is the infrastructure of arteries and veins delivering this lifeblood to all of the appendages of the company that need the results of this data compilation.
In addition, this sensitive and private information is disseminated to various internal and external associates, customers, partners and collaborators usually via the Internet, which exposes this data to compromise.
And yet, despite their expertise in risk analysis, many in the insurance industry fail to ask these questions:
When examined this way, any underwriter would agree that failure to adequately protect the sensitive data continually in transit in an insurance company's daily workflow presents an extremely high risk.
If data really is the lifeblood of the insurance business, and the data center is at the heart of the company, then the arteries and veins are the methods of moving that data to and from your departments, clients, business partners, and others.
While adding layers of physical security to the data center is a top priority for insurance IT professionals, securing the pathways in and out of that data center tends to be overlooked, despite media coverage of data breaches at companies worldwide. This lack of action underestimates the extent of the public's concern that their private data may be compromised, and state and federal efforts to more strictly regulate data storage and transfer policies.
Effectively managing FTP transactions is essential to mitigating the risks of data loss. The costs of implementing managed file transfer solutions are minimal and provide tremendous flexibility when striving to meet the requirements of trading partners and compliance regulations.
As the insurance industry knows better than anyone, the best approach is to mitigate risk with a cost efficient solution. In this case, taking direct action to protect data transfers is the obvious prescription for any organization -- especially one based on risk management.