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Member, Beacon International Group, Ltd.
Regulators, shareholders and other stakeholders are paying more attention to retailers’ cyber risk control measures as the frequency and severity of attacks and losses mount, says Marsh L.L.C. in a new report.
Issued Monday, “Data Security and Information Privacy Risks in the Retail Industry” states that nearly every state has enacted legislation to protect consumers’ personally identifiable information, with California apparently setting the standard for consumer privacy laws.
Key drivers of retailers’ data security risks, the report states, include the potential for significant legal and forensic investigations costs; growing scrutiny, including by the U.S. Securities and Exchange Commission; potential fines for failing to comply with the Payment Card Industry Data Security Standards; and the high cost of recovery from a data breach.
The report also discusses mitigating the costs of security failures through insurance.
Copies of the report are available here.