| | December 20188CIOReviewIN MYOPINION The analysis and use of data have transformed industries across the economic spectrum:technology, transportation, lodging, retail, media, and finance, to name a few. The winners in the digital economy will be companies that can best collect data, apply intelligence to analyze that data, and leverage the insights into sales or services. The most valuable asset for a companymay no longer be its inventory, buildings orfleet, but its data.Widespread digital transformation has created new risks for organizations and new challenges for the providers of insurance. The insurance industry was founded on the ability of London investors to determine the value of cargo headed to and from the New World and to underwrite the risk of the loss of that cargo. The value of tobacco in the hold of a ship was afairly straightforward calculation.Data, on the other hand, is less tangible and its valuemore difficult to calculate. What is the financial impact of a 20-minute outage of a social media platform? How much does a software bug in the entertainment center of a new car affect sales? What is the cost to a retailer if its customer loyalty database is hacked?Which of these risks can be insured? An insurance policy can allow the insured to recoup the costs incurred to recover lost, damaged or stolen data. It can't, however, repair the reputational harm and lost business opportunities related to a data outage. As digital strategies continue to accelerate, a partnership isessential among those who have different responsibilities for managing the relateddigital risks.Chief Information Officers,Chief Information Security Officers and risk managers must work together to understand the risks associated with data and information systems, to mitigate themand adopt a suitable risk transfer program. It is up to the CIO and the CISO to make sure the right measures are in place to prevent, detect and respond to threats to information systems and data. The risk management department must attend to putting in place the right insurance cover.Varied RisksMarsh's 2018 Communications, Media and Technology Risk study identified 10 different risks that could arise from a technology By Scott Gilbert, Chief Information Officer, Marsh & McLennan CompaniesCALCULATING THE VALUE OF ESSENTIAL, YET INTANGIBLE, DATA CHALLENGES
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