NEWCASTLE, 23 October 2006 – Local directors see cyber terrorism as the biggest new threat facing companies in the north east, according to a business forum hosted by Newcastle based insurance broker and risk management consultant Aon.  Newcastle city councillor George Pattison joined the debate, representing the local government’s viewpoint, on current and emerging risks including compensation culture, climate change, bird flu and terrorism.

The forum pinpointed cyber terrorism as the key concern for businesses in the region due to the potential impact on the bottom line by computer viruses destroying electronic data crucial to supply chain and customers.  Hackers accessing customer information (which should be safeguarded under the data protection act), credit card fraud via the internet, and malicious websites or blogs intended to harm the reputation of companies were also seen as serious threats.

The forum also highlighted the following risks to north east business:

• Compensation culture – This issue is high on companies’ agendas as, despite seeing a plateau on insurance claims, there is no room for complacency with the continuing actions of ‘ambulance chasers’ and the public’s expectation for generous payouts;
• Climate change – Directors should start cascading advice on reducing carbon dioxide emissions while considering how to translate these into cost savings to benefit both the company and the environment;
• Bird flu – The council has contingency plans in place but the forum discussed the extent to which businesses should prepare to protect employees in the event of an outbreak. Companies also highlighted the use technology to work remotely as part of their business continuity planning;
• Terrorism – The directors admitted that terrorism was not at the top of their agendas as an attack on Newcastle was seen as unlikely. However, they discussed the legal, moral and financial duties to employees and the business to ensure directors were prepared if an event was to occur.

Stephen Hicks, client relationship director at Aon who chaired the forum, said: “With the increasing influence of technology in business, it’s little surprise that cyber terrorism is at the top of the agenda for north east companies. This month’s ‘Get Safe Online’ report found that more than a fifth of internet users (21%) feel more vulnerable to cyber crime than any other type of criminal activity. This reinforces the fact that businesses are no exception to this emerging risk. Directors need to have risk management strategies in place to help prevent cyber and other key risks while also planning on how to react if their company was affected to enable business continuity.”

Notes to editor:

The Get Safe Online report commissioned an ICM survey of 1,317 adults in October 2006. Get Safe Online is a UK internet security awareness campaign launched last year by the Government, the Serious Organised Crime Agency and companies such as BT, eBay, HSBC, Microsoft and Secure Trading.

About Aon

Aon Corporation is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. There are 46,000 employees working in Aon's 500 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

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