… well, published it really. The fifth edition of MFM Risk and Insurance Guideline is now available and covers everything from disaster recovery planning to business interruption. The MFM will also address risk, liability changes and challenges affecting ad sales, contests and abandoned property at its annual conference in Atlanta, now just two weeks away.
When the topic of risk assurance comes up today it’s likely to be about the stress tests that the government is using to determine bank solvency. But closer to home, there is a lot more that media companies need to be doing today to be adequately protected against a host of potential liabilities.
Consider how the nature of our business has changed. Not only are we developing and delivering content over multiple platforms and using multiple formats, we are including more content from non-traditional sources. Our stations now regularly air pictures and videos from viewers, which can appear on one of more of our DTV transmissions as well as in online and mobile content.
In addition, we’re making new forays into customer interactions via the Web at the same time that privacy breaches are one of the fastest rising sources of business litigation.
A recent article in the Insurance Journal reported on the “U.S. Cost of Data Breach Study” conducted PGP Corp., a data protection firm, and The Ponemon Institute, an information management research firm. Between 2007 and 2008 alone, the study finds, the average total per-incident cost of a data security breach increased to $6.65 million from an average per-incident cost of $6.3 million. The Privacy Rights Clearinghouse has identified more than 250 million records of U.S. residents that have been exposed due to security breaches just since January 2005.
The article goes on to point out that there are many types of data security breaches that can affect any business. Over a five-year period, Kroll Inc., a risk consulting operating unit of Marsh & McLennan Companies Inc., found that in data security breaches, 4.8 percent occurred in disposal of documents on computers; 1.8 percent occurred with e-mail; 20.8 percent occurred because of hacking; 22.4 percent occurred because of lost, missing or stolen laptops; and 15.3 percent occurred via the Web.
With companies maintaining more information about viewers and customers, there is an urgent need for media companies to act now to reduce the possibility of troubling and potentially costly privacy breaches.
That’s one of the reasons that the MFM has published a new edition of the MFM Risk and Insurance Guideline for our members.
With the help of TechAssure, a nonprofit organization for risk management professionals who specialize in technology-based risks, and the Chubb Group of Insurance Companies, the only commercial insurer endorsed by MFM, this fifth edition of the Guideline has been completely rewritten and updated to reflect changes in the media and broadcasting industry.
The new Guideline provides the right tools and partners to allow risk managers and finance executives to more efficiently address their operational risks. It will help media companies save time and reduce expenses associated with the broad range of risk exposures in this complex stage of the industry’s evolution.
Finance professionals and risk managers will also appreciate the Guideline‘s ease of use in finding helpful information and advice on a wide variety of risk management challenges.
- Broadcasters or Media Professional Liability
- Disaster Recovery Planning
- Business Interruption
Checklists on important processes are also included in this latest edition and combine with related Web resources to provide a comprehensive road map for managing and lowering costs associated with insurance and related services.
In this challenging economy, every dollar saved counts. No media company can afford to ignore the increasing risks associated with protecting confidential data, user-generated content, special events, contests and remote locations.
Working with experts who are knowledgeable in the needs of media and broadcasting companies is also essential. Past experience with media industry claims has shown that costs can far exceed the limits of insurance purchased and, at times, aspects of some claims can be uncovered due to restrictions in policy terms. That’s a key factor in MFM’s endorsement of Chubb, which provides commercial insurance that’s tailored to the needs of the media industry.
Chubb is also one of the major sponsors for our annual conference, which will be held May 12-14 at the Westin Peachtree Plaza hotel in Atlanta.
The firm is sponsoring a breakfast and general session that will feature keynote remarks from Greater Media Chairman and CEO Peter Smyth; Fred Jacobs, founder and president of Jacobs Media, the largest radio consulting firm in the U.S. specializing in rock formats; and Evan Tracey, founder and president of the Campaign Media Analysis Group, the country’s top expert on political advertising.
With the theme of “Responding to Change,” the conference agenda also includes two sessions that address the changing landscape for risk assurance:
Natural disasters strike with little to no warning. Now, before they occur, is the time to look at property issues including valuation and coverage issues. The session will also examine how the new economic environment is affecting D&O, management liability, umbrella coverage and other liability issues. Panelists: Michael Drayer, Aon Risk Services, and Christopher Goodrich, Aon Brokerage Group.
Emergency Operations/Disaster Planning
Pre-planning is the key to successful emergency operations in a disaster situation. This panel will look at successful ways to guide the business model behind emergency response plans and business continuity plans. Attendees will learn how to secure executive support, how to approach pre-disaster planning, successful methods for developing and implementing continuity strategies and how to keep continuity alive. Moderator: Dan Adams, KFSN Fresno, Calif. Panelists: Joe Mannetta, Disney-ABC; Scott Nicholl, Chubb Group of Insurance Cos.; and Alex Soulis, FM Global.
Other sessions will focus on liability changes and challenges affecting advertising sales, contests, and abandoned property. The full agenda and registration info may be found here.
MFM’s annual conference, like everything we do, is designed to provide a solid return on the investments of time and money that our members and others make in our educational programs.
And we’ve done the stress tests to prove the expression, “You can take that to the bank.”
Mary Collins is the president and CEO of the Media Financial Management Association, a professional society addressing the diverse needs of the industry’s financial and business professionals. Her column appears here every other Friday.