RISK INDEX
Personal Privacy/Data Security Risk Remains CEOs’ No. 1 Concern High-profile data-hacking cases continued to dominate the news over the last three months, while terrorism in the corporate environment elevated everyone’s fears. PRIVACY CONCERN STABLE, WHILE CONCERN OVER TERRORISM INCREASES With data breaches affecting nearly everyone today, including children, privacy of data continues to rank the highest among CEO concerns for themselves and their families, as compared to geopolitical/terrorism, liability threats, physical damage/natural disasters and physical/family security. However, that concern is down slightly—1.2 percent—from six months ago (6.57 avg. rating in May vs. 6.65 in December). Conversely, CEO concern over geopolitical/terrorism risk increased the most at 11 percent (to 4.68 in May from 4.22 in December). The survey is conducted by Chief Executive, in partnership with PURE Insurance.
Privacy/data security risk still ranks highest among CEOs’ personal risks DEC 2014 7 6
MAY 2015
The majority of CEOs (75.8 percent) are either moderately or highly concerned about their and their family’s data/privacy risk. As the thefts of tax return data from the IRS in April and May showed, even the federal government is not safe from a breach. In addition, mobile pay apps and chip-based credit cards have not yet been proven safe from data/privacy risk.
-1.2%
GAP
+10.9%
+7.6%
+6.5%
DEGREE TO WHICH DATA/ PRIVACY RISK AFFECTS CEOS AND THEIR FAMILIES
CONCERN LEVEL
+1.2% 20.1%
4 2
55.7%
Physical Damage/ Natural Disasters
Liability Threats
Physical/Family Security
Privacy/Data
3. A domestic employee filing a claim
2. Young drivers on their policy (under 26)
4. A contractor who gets injured on their property (e.g, gardener, handyman)
5. Actions of a family member
FEAR OF TERRORISM IS ON THE RISE Terrorist attacks at the Boston Marathon and the offices of Charlie Hebdo have increased people’s concern about their family’s safety in public. That concern shows in CEOs’ responses to our risk survey. Compared to December, the number of CEOs highly concerned about the risk of geopolitical events or terrorism increased by 11 percent. It was the highest increase of all five categories. Furthermore, their confidence that they can mitigate that risk for themselves and their families has dropped 2.5 percent. DEC 2014 MAY 2015 GAP
COMFORT WITH LEVEL OF PROTECTION AGAINST DATA/PRIVACY RISK CEOs have a low level of comfort with their ability to protect themselves and their families from the type of data/ privacy risk that exists today. Less than one-third (28.5 percent) of respondents felt highly comfortable with their ability to protect personal data with the resources available to them today. Nearly 40 percent have a low level of comfort, indicating that they do not feel confident about being able to protect themselves and their families from this risk.
COMFORT LEVEL LOW MEDIUM HIGH
-2.5%
+10.9%
28.5%
4.22
4.68
Degree to which this risk affects you and your family
26 / CHIEFEXECUTIVE.NET /
24.1%
Geopolitical/ Terrorism
FEAR FACTOR: TOP 5 PERSONAL LIABILITY ISSUES ABOUT WHICH CEOS ARE MOST CONCERNED 1. A car accident involving themselves or a family member
5.91
5.76
Comfort with level of protection and/or risk transfer
JULY/AUGUST 2015
LOW MEDIUM HIGH
32.2%
39.3%