According to a recent crime study by PricewaterhouseCoopers (PWC), the types of crime threats facing US businesses continues to change.
Not surprising, businesses in the US are experiencing higher incidents of cyber crime as well as heightened fear of cyber crime liability compared to businesses in other countries.
According to the survey, of the US organizations affected by some kind of fraud in the last 24 months, 44% of those businesses say they were affected specifically by cyber crime fraud, and nearly half of US-based survey respondents said they worried they would experience some type of cyber crime in the next 24 months.
As to why US organizations have significantly higher fears of cyber crime compared to foreign businesses is not entirely clear, though it likely reflects that the largest public-facing cybercrime incidents over the last two years have affected US-based corporations such as VISA and Target, and as a result domestic organizations are perhaps more sensitive of the risk.
Fraud and cyber liability are major threats for organizations, and a solid risk management program must plan for cyber liability not only coming from internal threats or threats to internal systems, but also vicarious or indirect liabilty related to cyber liability affected by your vendors, contractors and suppliers.
Hold harmless language (a/k/a indemnity language) is found in most contracts and agreements, with the purpose of transferring the obligations of one party to another to defend and make whole the other party for legal liability, typically related to the services, work or nature of the contract.