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Summer Journal

Volume 29, Issue 3

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Jon Seals

Aon Global Risk Consulting has published its 2016 Captive Cyber Survey report, which finds that the costs of business interruption due to a breach is the top cyber risk concern for businesses across all industries.

As Aon’s first cyber captive survey, the findings offer a better understanding of organizations’ current attitude towards cyber threats, risk assessment, insurance purchasing trends and loss adjustment concerns and provides insight into current retail market trends, including captives and other risk financing solutions.

“Our findings indicate that there is a disparity between companies recognizing that cyber is one of the fastest growing and permeating risks, and actually understanding what their individual exposures and coverage needs are,” said Peter Mullen, chief executive officer of Aon Risk Solutions’ Aon Captive and Insurance Management practice, who spearheaded the report. “Captives are a great alternative risk transfer solution for bridging this gap while the industry’s approach to cyber risk management catches up to the evolving pace of technology.”

The survey findings indicate that 94 percent of companies would share risk with others in their industry as part of a captive facility writing cyber. What’s more, Aon experts anticipate alternative risk transfer options to become increasingly sought after as these solutions give companies some control over underwriting, coverage scope and claims adjustment, while providing an opportunity to share best practices, experience and data in a private setting.

Additional highlights of the report include:

  • 61 percent of survey respondents buy cyber limits in the $10-25 million range, but overall 60 percent of large companies do not buy cyber insurance;
  • Of those that do, 68 percent of companies surveyed buy cyber for balance sheet protection closely followed by ensuring due diligence comfort for the board;
  • Only 25 percent of respondents that buy limits are confident that they comply with international best practices and standards for information security governance;
  • 95 percent of companies surveyed state clear policy wording as the most important issue in the cyber risk market, and 75 percent of large companies express concerns about the loss adjustment process.  

“Given the evolving nature and complexity of cyber exposures, we found that the use of cyber risk assessments is surprisingly low,” said Kevin Kalinich, global practice leader for cyber/network risk at Aon Risk Solutions. “Conducting such an assessment is a useful tool for improving risk understanding and maturity as well as for helping organizations better prepare for potential business interruption during or after a breach.”

Aon recommends the following three steps to begin a cyber risk assessment:

1. Scenario analysis: benchmark the existing cyber risk profile and work with business stakeholders to prioritize cyber risk scenarios;

2. Financial modeling: leverage advanced financial simulation tools using deterministic modeling to quantify first and third party costs of select cyber scenarios. Consider performing an analysis on non-damage business interruption scenarios using forensic accounting capabilities;

3. Insurability risk review: test the adequacy of limits against the assessed cyber risk as well as review the optimization of the proposed insurance program.


Many states are enduring tornado season, and all of the destruction and disaster that goes a long with tornados. Tornados can cause so much devastation in such a short amount of time. David Conrad, EMA director, said that form the time a warning siren goes off, the tornado has already passes within 6 minutes of that[1]. When communities issue a “watch”, it means that conditions are favorable and citizens should be on the lookout. Once a “warning” has been issued, that means that a tornado has been spotted.

In Osceola County, Florida, the city will sound the sirens once the National Weather Service issues a tornado warning for their area[2]. For the NWS to issue a tornado warning, weather conditions must line up perfectly. Often, the last minute siren is not enough notice to fully prepare for a full speed tornado. Osceola relies on social media and Nixle to help inform residents of looming weather conditions and keep them safe.



Nearly two thirds of healthcare IT leaders reported experiencing a data breach, and nearly one in five said the breach occurred in the past year, according to a new survey.

The Healthcare Edition of the 2016 Vormetric Data Threat Report, comissioned by data protection firm Vormetric, was based on a poll of 1,100 IT security managers, including more than 100 from healthcare organizations.



JEFFERSON CITY, Mo. - Until it happens to them, most people don’t realize that even an inch or two of water can cause thousands of dollars in damage. During the recent floods in Missouri, thousands experienced the trauma of flooded homes and businesses. The toll not only includes the heartbreak of losing precious possessions, but financial hardship, especially for those who don’t have flood insurance.

Spring, when flooding is typically most severe, has arrived. But you can still purchase a National Flood Insurance Program (NFIP) policy to protect your home and its contents or your business. Remember – there is a 30-day waiting period before a policy takes effect.

Homeowners' insurance doesn't cover flood damage, but the NFIP does. Funded by the Federal Emergency Management Agency (FEMA), NFIP makes flood insurance available for communities that participate in the program, regardless of whether the area is high, low, or medium risk. NFIP carries a maximum coverage of $250,000 for homes and $100,000 for contents. Business coverage is a maximum of $500,000 for building and $500,000 for contents.

Many Missouri residents decided to buy flood insurance to protect against the risk of flooding. The amount of claims paid to homeowners and renters with flood insurance is more than double the amount of FEMA grants and U.S. Small Business Administration (SBA) loans in several counties designated for federal assistance for damages from the recent flooding:

  • In Taney County, the National Flood Insurance Program (NFIP) paid policyholders more than $4.2 million in claims. Comparably, FEMA and SBA paid a total of $416,724 in grants and loans.

  • In St. Louis County, NFIP paid policyholders more than $14.3 million in claims, while loans and grants to St. Louis County residents totaled more than $6.8 million.

  • In Phelps County, NFIP paid nearly $1.9 million to policyholders while FEMA and SBA assistance was $254,254.

FEMA Individual Assistance can pay for losses not covered by insurance such as temporary rental assistance. Flood insurance can potentially provide your family with much more money – up to $350,000 – after a flood.

It’s also important to remember that NFIP insurance covers flood damage regardless of where there is a federal disaster declaration. That is another benefit of being covered by insurance.

To learn more about any property's flood risk, estimate an NFIP premium or locate an insurance agent who sells flood insurance, log on to www.floodsmart.gov. For flood information and safety tips visit www.ready.gov/floods. Find the Spanish-language web site at www.listo.gov.


For breaking news about flood recovery, follow FEMA Region 7 on Twitter at https://twitter.com/femaregion7 and turn on mobile notifications or visit the FEMA webpages dedicated to this disaster at www.fema.gov/disaster/4250.

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

All FEMA disaster assistance will be provided without discrimination on the grounds of race, color, sex (including sexual harassment), religion, national origin, age, disability, limited English proficiency, economic status, or retaliation. If you believe your civil rights are being violated, call 800-621-3362 or 800-462-7585(TTY/TDD).

The SBA is the federal government’s primary source of money for the long-term rebuilding of disaster-damaged private property. SBA helps businesses of all sizes, private non-profit organizations, homeowners and renters fund repairs or rebuilding efforts and cover the cost of replacing lost or disaster-damaged personal property. These disaster loans cover losses not fully compensated by insurance or other recoveries and do not duplicate benefits of other agencies or organizations. For more information, applicants may contact SBA’s Disaster Assistance Customer Service Center by calling 800-659-2955, emailing disastercustomerservice@sba.gov, or visiting SBA’s website at www.sba.gov/disaster. Deaf and hard-of-hearing individuals may call 800-877-8339.

(TNS) - The City Council has discussed paying a contractor to help the city prepare natural disaster response plans.

Such preparation services could cost the city as much as $19,000, but the contractor would bring valuable experience navigating FEMA regulations, officials said.

The contractor’s services could also help the city obtain more reimbursement money from FEMA in the event of a natural disaster, a council member noted.



2015: Europe's most lethal year for terrorism in a decade

2015 was the most lethal year for terrorist violence in Europe in nearly a decade as terrorists increasingly target private citizens and public gatherings, according to a study by Aon Risk Solutions. This marks the first net increase in global terrorism risk ratings since 2013, with the risk ratings of 18 countries experiencing an increase and 13 countries seeing a decrease.

For the first time since Aon's Terrorism and Political Violence Map was first created in 2007, shootings have overtaken bombings in the western world, while the targeting of civilians in public spaces has become more commonplace. Since January 2015, nearly one-third (31%) of all attacks in the western world targeted private citizens and public gatherings.

The global threat posed by Islamic State dominates many of the map findings this year, as the group entered a more aggressive phase of mounting mass casualty attacks in 2015 and early 2016, with the United States, France, Turkey and Belgium all affected. The terrorist organisation’s activities have contributed to sustaining or increasing risk levels in more than a dozen countries worldwide. Far-right activism as well as civil unrest risks stemming from the European migrant crisis and the increasing influence of extremist parties have also driven rating increases.

Our 2016 map demonstrates increasing regional instability and a growing spectrum of potential risks,” said Scott Bolton, director in Crisis Management at Aon Risk Solutions. “The threats highlighted in the map should encourage business leaders with global footprints to adopt a more strategic risk management approach to limit the impact of attacks on their people, operations and assets. Understanding how they are exposed to the peril is key to achieving this outcome.

With all this as a backdrop, it is easy to see why acts of terror have increased as a concern for business continuity professionals according to the Business Continuity Institute’s latest Horizon Scan Report. In this report it was ranked as the fourth greatest threat with 55% of respondents to a global survey expressing concern about the prospect of an act of terror impacting on their organization. It is therefore essential that organizations have business continuity plans in place that will enable them to manage through the disruption caused by a terrorist event, whatever form it may take.

The Two Industry Leading Companies Will Work Together to Ensure Longevity for Internet Exchanges

NEW YORK, NY – TELEHOUSE, a global leader for data centers, international Internet exchanges and managed IT services, today announced the formation of a long-term plan with Verizon Digital Media Services, the next-generation digital media platform, to build out Internet Exchange points.

Verizon Digital Media Services is already a member in TELEHOUSE's LAIIX and NYIIX, and plans to participate in potential future TELEHOUSE Internet Exchange points.

"Working with TELEHOUSE will enable us to further expand our content delivery network presence," said Verizon Digital Media Services' Chief Technology Officer Rob Peters. "Together, we will augment both scale and network performance, to successfully meet the increasing consumer demand for quick, reliable access to online content."

"As a true global leader in the digital media supply chain market, having Verizon Digital Media Services at all TELEHOUSE's Internet Exchange Points gives tremendous value to our organization and its peering members. I strongly encourage any network to join NYIIX or LAIIX and publicly peer with Verizon Digital Media Services," said Akio Sugeno, VP of Internet Engineering, Operations and Business Development.

Verizon Digital Media Services is part of AOL, a Verizon Communications, Inc. company, and has an open peering policy. Through an array of industry leading e-commerce, security and OTT products, Verizon Digital Media Services enables leading content creators, publishers, broadcasters and enterprises to securely and profitably deliver their content to audiences anytime, anywhere, on any device.

For additional public peering details, visit http://as15133.peeringdb.com or https://www.verizondigitalmedia.com

About TELEHOUSE America
A stable and trusted pioneer of carrier-neutral data center services, TELEHOUSE provides secure, power-protected environments, where clients house and operate their telecommunications and network resources. Among the many benefits of colocating with TELEHOUSE is the ability to connect to state-of-the-art peering exchanges in New York (NYIIX) and Los Angeles (LAIIX). Through Manage-E, TELEHOUSE provides a comprehensive suite of solutions -- from help desk and hardware support to managed IT infrastructure, security and compliance services -- all delivered by expert consulting and operations teams on a global scale and from one point-of-contact. Additionally, the global availability of 48 TELEHOUSE-branded data centers in 23 cities throughout Asia, Africa, North America and EMEA, delivers continuous, cost-effective operation of network-dependent, IT infrastructure to businesses around the world. Please visit www.telehouse.com, at sales@telehouse.com. Connect with TELEHOUSE on Twitter and LinkedIn.

Verizon Communications Inc. (NYSE: VZ) (NASDAQ: VZ) employs a diverse workforce of 177,700 and generated nearly $132 billion in 2015 revenues. Verizon operates America's most reliable wireless network, with more than 112 million retail connections nationwide. Headquartered in New York, the company also provides communications and entertainment services over America's most advanced fiber-optic network, and delivers integrated business solutions to customers worldwide.

The Supply Chain Management As-a-Service HfS Blueprint Report Is a New Look at This Evolving Market; This Blueprint Builds on the Initial Supply Chain Management BPO HfS Blueprint of 2014 to Look in Greater Detail at the Adoption of the 8 Ideals of As-a-Service Delivery in This Fast-Moving and Critical Business Function

VALENCIA, Calif. – Data was collected in Q4 2015 and Q1 2016, covering buyers, providers and advisors/influencers of Supply Chain Management Services. More than 980 data points were collected, covering 14 major service providers.

In order to pull together a comprehensive view of the market, HfS Research created importance weightings for the key categories of services innovation and execution, that were based on the opinions of 1109 services buyers, advisors and provider executions in their 2014 State of Outsourcing Study, conducted in conjunction with KPMG. In addition, HfS Research conducted exhaustive interviews with more than 100 F&A service buyers in order to create the report.

The Winners Circle positioning is based on providers who scored highest in Execution and Innovation. They demonstrated strong collaborative relationships with clients and carried out services with a combination of talent, technology and flexible arrangements, while also articulating a vision and "new way of thinking."

Analyst Charles Sutherland, the author of the report, has positioned arvato in the Winners Circle based on industry orientation, SCM vision and IoT integration.

Visit HfS Research (HfS) to download the complete report.

About arvato

arvato is an international service provider. Nearly 70,000 employees design and produce innovative solutions for business customers from all over the world, covering a wide range of business processes along integrated service chains. These include Digital Marketing, Financial, CRM, SCM and IT solutions. arvato is a division of Bertelsmann. www.arvato.com/us

SAN MATEO, Calif. – Guavus, Inc., a leading provider of big data analytics applications for operational intelligence, today announced that it has joined the RDK Community as a licensee. Guavus' suite of operational analytics applications make it easy to draw together data collected from RDK set-top boxes, gateways and other devices, together with the operator's own network data and customer interaction data, to provide real-time analytics that improve network operations, service assurance and customer care. 

Real-time data is one of the critical tools necessary for operators to leverage in order to deliver the best customer experience possible. By correlating and contextualizing data from across the organization, operators can anticipate, address and prevent problems that impact the customer experience through the deployment of self-healing networks. Some of these insights may include: context around KPIs, mapping the toll of outages to different customer populations to gauge the impact on customers, and predicting the impact of introducing new CPE or services into the network.

"One of the key benefits of RDK is the volume of CPE performance data that can be gathered from the field," said Steve Heeb, President and General Manager of RDK Management, LLC. "By collecting and analyzing this data, operators can quicken the pace for targeted product releases. We are very pleased to welcome Guavus to the RDK Community."

"Customer experience is fast becoming the most important end product for operators," said Gabriele Di Piazza, SVP Products and Marketing for Guavus. "The role of collaborative and cross functional decision making enabled by real-time analytics aligns with the fundamental goal in the RDK community, which is to deliver an agile infrastructure for delivering next-gen products at web speed." 

The Reference Design Kit (RDK) is a pre-integrated software bundle that provides a common framework for powering customer-premises equipment (CPE) from network operators. It enables network operators to standardize certain elements of these devices, but also to easily customize the applications and user experiences that ride on top. The RDK is supported by more than 250 companies including CE manufacturers, SOCs vendors, software developers, system integrators, and network operators. It is administered by the RDK Management LLC, a joint venture between Comcast Cable, Time Warner Cable, and Liberty Global. Beyond video-centric set-top boxes (RDK-V), the RDK community is now focused on providing similar software commonality and standardization across data gateways, a software initiative called RDK-B (broadband). 

About Guavus

Guavus solves the world's most complex data problems. Proven across Tier 1 service providers, Guavus provides a new generation of analytically powered big data applications to address specific business problems for next-generation service assurance, next-generation customer experience management and the Internet of Things. The Company uniquely breaks down the barriers between Operational Support Systems and Business Support Systems to enable customers to deliver a better customer experience, improve service operations and more efficiently plan network capacity. Guavus' operational intelligence applications correlate and analyze massive amounts of streaming and stored business, operational and sensor data from multiple, disparate source systems in real time. Guavus products currently process more than two trillion transactions per day.

Contracted Services Include MDU/RF Design, As-Built and Fiber Route Design; Additional Services Include GIS Drafting and Light Detection and Ranging (LiDAR)

WILLOWBROOK, Ill. –  Construction-CAD Solutions (CCS), a full-service provider of turnkey Network Design, Project Management, Site Survey and Structured Cabling solutions to communications, cable, utility, and other related industries, announces today that it has formally entered into an agreement with a leading public communications company in Canada to provide a suite of networking and design services. The contract signing comes as CCS continues its impressive overall client growth in the US and Canada and serves to provide a critical speed to market advantage for the Canadian communications company.

"This contract further entrenches and solidifies our growth in the Canadian market," comments John Logan, VP of Operations & Engineering at CCS. "We're set to help a significant public communications provider get an upper hand by providing a superior level of expertise and the technological tools to help them expand and enter markets efficiently and economically. This is a substantial deal for CCS and we're thrilled to be getting started."

Already the preferred 3D modeler and designer for Swisslog TransLogic® in Canada, CCS will provide a number of services and solutions as part of the new contract, including MDU/RF design; As-Built drawings; fiber route design and Geographic Information System (GIS) solutions. A key component to the new agreement is CCS' Light Detection and Ranging (LiDAR) solution. LiDAR is a remote sensing method that uses light in the form of a sweeping laser to measure ranges (variable distances) to the Earth. These light pulses generate precise, three-dimensional information about shape and surface characteristics. CCS's LiDAR enabled mobile mapping system offers high density, high precision, point clouds combined with high resolution panoramas from a system that is smaller, lighter and easier to handle.

To learn more about CCS' award-winning suite of Network Design, Project Management, Site Survey and Structured Cabling, visit www.concadinc.com.

About CCS
Established in 1998, Construction-CAD Solutions (CCS) is a full-service provider of turnkey Network Design, Project Management, Site Survey and Structured Cabling solutions to telecommunications, cable, utility, and other related industries. As part of its comprehensive solutions portfolio, CCS offers Drafting, Surveying, Permitting, Engineering, and Building Information Modeling (BIM) services. CCS' inventive ideas and custom solutions keep its client engagements on time and on budget. The team is comprised of proficient and experienced project managers, consultants, CAD technicians, designers, 3-D BIM modelers, and land surveyors. A sole-source provider to many Fortune 1000 companies, with engagements in both North and South America, CCS has built its reputation on delivering value-added network design and construction support, backed by a customer-centric philosophy that runs company-wide.

Visit www.concadinc.com for more information. Follow the company on Twitter and LinkedIn.