With the impending General Data Protection Regulation (GDPR) coming into force in May 2018 you could be forgiven for thinking the world was on the brink of another Y2K scenario. It was that time around the millennium when everyone thought that all the computers would implode come the stroke of midnight in the year 1999 as we headed into the new century. What in fact did happen was not much really and everyone soon forgot what they were worried about and just got on with their lives. Now you could say the same thing about the GDPR and the impending fines that could be about to be handed out or you could argue that a select few multinationals will be singled out and made an example of but it won’t go much further than that.
Companies may be more concerned about the threat to their reputation. Should a company suffer a Data Breach they may be able to find out the problem and put a stop to it, however by this time the main damage will be done i.e. the loss of trust from their own customers. As with any loss or interruption to a business, should you be able to rectify the problem, it could all be for nothing when your customers have deserted you and gone elsewhere. When it comes to a Data Breach it is just as important to deal with customers and the public in keeping them informed of the situation and how it is being rectified.
Most insurers who offer Cyber and Data polices will be partnered with a Public Relation (PR) firm who can help to quickly provide the right advice on how to respond to the public. This could include breach coaching and advice on what to tell your customers. Some policies will also offer credit checks and ongoing monitoring for customers who have been affected by the lost data. All these things can help to build trust back up with your customers and the public; to the extent that once the breach is fixed they are happy to continue to work with you.
By Peter Ryder ACII – Chartered Insurance Broker – Account Executive