printer friendly version

Risk management kit launched

The recent theft of monies from private Internet banking accounts using sleuth software highlights how business risk has altered dramatically since the adoption of the Internet as a medium for business transactions.

Gustav Roth, head of Alexander Forbes' Legal Risk Services team, said any business that makes use of e-mail, intranet or the Internet has a significantly increased risk of being exposed to actions that could leave it legally liable for any damages that result. He said due to the speed, efficiency, accessibility and cost-associated benefits of electronic communication and storage mediums, more and more organisations are increasingly dependent on these electronic mediums to conduct their business.

As a result they are exposed to increased risk in the form of intentional or unintentional actions. Such actions include the unintentional release of confidential client, supplier or other third party information, negligent mis-statements, criminal or delictual liability and a raft of other exposures around e-mail, Internet and intranet usage and abuse.

To aid companies in assessing and managing their legal risk associated with e-commerce and e-business, the Alexander Forbes Legal Risk Services team recently launched its E-Risk Help Kit, a CD-ROM-based product designed to understand, identify and manage E-Risk threats.

The kit presents a practical, visual explanation of a company's E-Risk exposures related to e-mail, Internet, intranet and company websites (on-line presence), offering self-audit risk identification and assessment guidelines, followed by practical step-by-step solutions to the identified risks. The help kit offers intelligence on issues such as information security, change in corporate risk profiles, factors influencing exposures, e-business versus e-commerce and first-party loss versus third-party liability.

Roth said the kit also assists companies to comply with corporate governance requirements and reported that the kit has enjoyed tremendous uptake among Alexander Forbes' clients and says it is currently deployed by 45 organisations across 10 sectors. "Risk analysis is the cornerstone of risk management. The benefit of the kit lies in its ability to assist with both the analysis and the management of e-risk," said Roth.

Share this article:

Further reading: