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Aon’s Top Cyber Threats for 2019 Revealed

Companies’ cyber risk profiles should be updated in tandem with each new digital technology that it embraces, according to Aon in its 2019 Cyber Security Risk Report. The scale of attacks and their impact on organizations is intensifying, and as recently reported, are becoming less predictable. Ransomware attacks may have peaked in 2018, as industry experts have noted, which sent malicious actors reverting to good old fashioned digital extortion, albeit with a slight twist.

Adopting a proactive outlook is the best way for companies to respond to the complex and changing set of cyberrisks, said Jason J. Hogg, CEO of Aon Cyber Solutions.

“To better prepare against attack, organizations should continually assess their overall cyber risk profile, remediate where recommended and proactively manage their defense,” Hogg said.

The report discusses eight prominent areas where organizations are expected to face cybersecurity threats this year.

  1. Technology
  2. Supply Chain

  3. IoT
  4. Business Operations
  5. Employees


  6. Mergers & Acquisitions
  7. Regulatory
  8. Board of Directors

Terror Attacks Hit Five-Year Worldwide Low

There is some good news for international travelers: Terror attacks and casualties continue to decline worldwide. New information released by the U.S. State Department last week found that there has been a 23% drop in attacks from 2016 to 2017 and a 27.

1% drop in victims killed in the same one-year period.

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According to Statista, the number of incidents dropped to 8,584 and deaths to 18,753. Seventy percent of those fatalities were concentrated in five war-torn countries: Afghanistan, Iraq, Nigeria, Somalia and Syria.

Statista reported:

President Trump is doubling down on this tough stance, which is part of a wider pivot happening across the State Department [and] the Bureau moving away from a decades-long focus on fighting foreign extremist groups to concentrating on state adversaries.

The focus on Iran echoes sentiments from the State Department, which last week published a report warning of Iran’s illegal and destructive activities:

In addition to its support of proxies and terrorist groups abroad, Iran also harbors terrorists within its own borders, thereby facilitating their activities. Iran continues to allow Al Qaeda operatives to reside in Iran, where they have been able to move money and fighters to South Asia and Syria.

Q&A: School Shooter Preparedness

Schools across the country are back in session. And in the wake of high-profile school shootings earlier this year, safety is a top priority for students, parents, educators and communities. Steven Smith, founder and president of Guardian Defense, specializes in active shooter preparedness and works with education industry leaders to keep their facilities safe.

We reached out to Smith to discuss how preparedness strategies have changed, the types of plans schools implement and for ways to better incorporate them into their culture.

Risk Management Monitor: How have recent school shootings impacted the way you train clients?

Steve Smith: Every mass shooting at a school impacts our training because we learn a little bit more from these horrific events on how to prepare, train and react. Parkland was different for our company because it hit home as this event occurred in our nearby community. Parkland impacted us, our staff, our community and our friends personally. Along with my SWAT Team, I responded to the incident and arrived on scene approximately 30 minutes after the incident. Some of our staff had friends working in the school and knew of other co-workers who had their children attending the school during that time.

RMM: Have they changed active shooter preparedness plans among schools?

SS: By the time law enforcement arrive on scene during a mass casualty incident, the damage has often already been done. The teachers and staff at the schools must receive training, understand the situation, make their own decisions and put action behind it. This will help mitigate mass casualties.

Active shooter preparedness plans change at times depending on the individual school, if they are private, or in a county with a large school district. The biggest hurdle I find in the change in policies is the lack of knowledge and experience. Generally speaking, the “active shooter” concern has not been in school or corporate safety plans for very long. Most administrators tasked with providing training and updating safety plans for this type of threat were never in a formal “lockdown” drill when they were students, themselves. Recognizing this, they rely on the experts for guidance and training to provide them with realistic policies, training and a drill plan for their staff.

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RMM: What are the potential risks or benefits of arming teachers?

SS: The perception of every teacher being armed in our schools is not yet a reality in this country. There are alternatives to arming teachers in classrooms. One that immediately comes to mind is training.

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A teacher with no previous training will have to incur at least two weeks of firearm training and even more tactical training on how to respond to these incidents. This will take time and money, which is usually hard to come by in any school or business.

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Other alternatives that meet safety needs have been discussed and approved in many districts. Schools have hired police officers in their cities to work off-duty employment. This would be my first recommendation because officers are trained and obligated to respond to this threat.

RMM: What are the factors risk professionals should consider when choosing a preparedness plan?

SS: All facets of security are important, such as structural hardening and security upgrades, but if we are building a foundation for active threat preparedness, our recommendation is to follow our model of Policy-Train-Drill.

In order to respond appropriately to a threat on site, every individual needs to understand how to make decisions for themselves and put action behind it. Time is not on our side when it comes to this type of crisis and people, in general, have stood by to wait for direction and instruction when there is an emergency. In these incidents, delayed responses can equate to mass casualties. Therefore, putting the response plans on paper, training all staff, and conducting drills are where we find the best starting point for active threat preparedness.

RMM: When hosting an event, what can risk managers do to avoid a shooting like the recent one in Jacksonville?

SS: If an incident gets to the point where an attacker is carrying out their plan, it does not mean the hosting site failed. In some instances, indications of a threat are not clear or available, making intervention efforts difficult. We can prepare beforehand for a possible threat.

  • My first recommendation would be to meet with the local police department and inform them of the event. Request to pay for a detail officer to be on site. The number of hired officers would depend on the projected number of attendees. The officer’s presence alone could deter an attack.
  • I would also request to have a meeting with the police supervisor that would be working the day of the event and share the floor plans and emergency procedures with all contact information, so law enforcement and fire would have everything they need in case of an emergency.
  • If there are no police available on that day, consider hiring armed security officers to be on site.
  • Inside the event site, install a security checkpoint with bag checks or security wands being utilized to ensure no weapons are being brought into the event. Depending on the event, prior notice can be communicated that a strict “no-bag policy” will be enforced.
  • Meet with staff beforehand and establish a “safety team” that will discuss vulnerabilities and how you will remedy them.

Regardless of the event, security must be the utmost priority and will at times feel inconvenient for the guests, but the old saying, “Safety first” is how we need to think and prepare in today’s world.

Jacksonville Murders Force Reassessment of Active Shooter Risks

A mass shooting at a video game tournament in Jacksonville, Florida on Sunday has once again shined a spotlight on the growing risks businesses face even as they conduct normal operations.

A lone shooter, 24-year-old David Katz, opened fire on football video gamers at a pizza restaurant, killing two and injuring at least nine before turning the gun on himself in an adjacent restaurant. Reports indicate that Katz was allegedly upset at being eliminated from the tournament. One of the deceased victims was a player who defeated Katz in a prior tournament, leading investigators to believe there had been a motive for the shooting. 

The effect of mass shootings has left Florida numb, especially since this follows the Feb. 14 massacre at Marjory Stoneman Douglas High School in Parkland, which left 17 dead and 17 injured; and the Pulse Nightclub shooting in Orlando in 2016, leaving 49 dead and 53 injured. These tragedies demonstrate that no business or venue should consider itself inherently safe and serve as reminders to risk professionals in all sectors that their organizations could be vulnerable to a mass shooting.

Public Safety
The shooting was unique in that it occurred during a live broadcast of the football gaming tournament. Gunshots were clearly audible as players delivered commentary during their simulated contests, prompting them to take cover and call the police, who responded minutes after receiving the first call.  

The incident marked the 235th mass shooting in the U.S., according to the Gun Violence Archive, an organization that collects information about gun-related violence in the country. The FBI and the United States’ Congressional Research Service consider a mass shooting to be one that injures at least four people, excluding the shooter.

In light of this increasingly commonplace threat, understanding how to respond to an active shooter situation can mean the difference between life and death. The U.S. Department of Homeland Security has provided the Run.Hide.Fight plan for guidance in what to do in an active shooter scenario.

Mental Health
As more information about Katz emerges, the links between gun violence, mental health and public safety in the United States become more evident.

CNN reported that Katz had a history of mental health issues and legally purchased a 9mm handgun and a .45-caliber handgun in Maryland. How he transported the weapons and ammunition across state lines and into the event are details still being investigated.

CNN also obtained police records that show 26 calls to the police from the Katz family home in Columbia, Maryland, from 1993 to 2009, for issues ranging from “mental illness” to domestic disputes. At least two of those calls involved Katz arguing with his mother, although none of the reports provided to CNN indicate any physical violence.

Since 2013, residents in Maryland must obtain a handgun qualification license from the state police before purchasing a pistol or revolver. That means Katz would have submitted his fingerprints, undergone a background check (which includes disqualifying individuals who were voluntarily or involuntarily hospitalized for more than 30 days), and passed a firearms safety training course to buy those guns. This scenario has been met with wide skepticism. And since some of his documented mental health issues may have occurred before the gun laws were revised, the disqualifications may not have applied to Katz.

“That clearly is an area in need of reform,” said Democratic Sen. Robert Zirkin, who chairs a Senate committee that handles gun laws.

Insurance
Risk Management magazine recently reported that companies may not be aware of potential gaps in their coverage or that the limits of their coverage, when considering active shooter incidents, are insufficient.

“You might have property coverage, but you might not have assessed your properties in specific locations against this type of risk,” said Robert Hartwig, clinical associate professor of finance and co-director of the Risk and Uncertainty Management Center at the University of South Carolina’s Darla Moore School of Business.“You almost certainly would not have crisis management under your ordinary property or liability policy. So these represent gaps that, as a risk manager, you might be unaware of.”

Beyond property damage, it can be unclear what is covered after a shooting. For example it is difficult to establish the liability for allowing an assailant on a property. “Unfortunately, the increase in the number of active shooter situations has probably gotten ahead of the law on this issue,” Hartwig said. He added that a number of states do allow individuals to carry concealed weapons much, if not all, of the time. “So it’s not necessarily the case that, just by entering the premises with a weapon, individuals are violating the law. Therefore, a business is not necessarily negligent by allowing an armed individual to enter its premises.”