As the world moves on from the industrial age to the information age, businesses have increased their dependence on digital systems. Because of this dependency, businesses are under numerous and complex threats now than they were in the past. Also, a number of unpredicted events that have occurred in recent past, such as the September 11 terrorist attacks on US, cases of virus attacks, collapse of big corporations and recent hackers breaking into wellestablished corporate systems have massively affected businesses.
Information
security, which has become the prime concern for
companies, puts a lot of emphasis on the insurance
industry that takes care of the socalled digital risk.
The growing dependency on information technology and
the emergence of new risks associated with it requires
insurers to reanalyze the insurance business.
Internet-based
applications such as ecommerce. BCM can be defined as
a development in organizations that involves planning,
implementation and maintenance of a disaster recovery
process.
Let's
take a look at history for disaster management; The
General Assembly of United Nations adopted resolution
No.42/169, "To designate the 1990s as a decade in
which the International Community, under the auspices
of the United Nations, will pay special attention to
fostering international co-operation in the field of
natural disaster reduction". Loss of life and
physical property was the main motivation for this
resolution. And because of this, there was a renewed
emphasis on pre-disaster planning preparedness and
prevention to complement humanitarian postdisaster
relief capabilities. The general insurance industry in
the country has designed various low cost package
covers against natural disaster perils. As a result of
this encouragement for risk, reduction is inbuilt in
the Insurance Premium Rates. Lower premiums are
charged for lower risk. |
