Today I went to Adventure Island with my cousins, and took all the adventurous 'scary' rides..
Huge fun.. I dint miss even a single scary ride.. just to find out they were just not all that bad..
Loved the whole experience.. :)
Wednesday, July 22, 2009
Are you emotionally bonded Organization?http://www.businessweek.com/careers/managementiq/archives/2007/12/are_you_emotion.html
A very interesting article on emotionally bonded organizations
http://www.businessweek.com/careers/managementiq/archives/2007/12/are_you_emotion.html
http://www.businessweek.com/careers/managementiq/archives/2007/12/are_you_emotion.html
Bill Gates' Business Mantras
What makes Bill Gates influential global business thinker
William Henry Gates III (b. 1955) was born in Seattle. He won a place at Harvard but dropped out, partly through lack of confidence in his teachers. In 1976 his interest in electronics propelled him to found with his friend Paul Allen a company for writing software for micro-electronic devices called Microsoft. Their first product was a version of the programming language BASIC for the primitive Altair 8800, the first personal computer in the world.
Five years later they licensed an operating system MS DOS to IBM for use with that company's nascent personal computer. Gates and Allen retained the right to use and develop the system themselves. Gates had a mission, to put a personal computer (using Microsoft software and programming languages) on every desk and in every home. IBM felt that the PC was at most a fad or a toy. The personal computer market mushroomed throughout the 1980s and 1990s, and with it grew the success of Microsoft.
Bill Gates likes to portray himself as something of a techno-prophet, but neither he nor Microsoft have a sure Midas touch. He was at first dismissive of the Internet, seeing it as a geek's plaything. Once he realised his mistake he made a high-speed U-turn. The result has included Microsoft Outlook. Microsoft's operating system for networks and servers, Microsoft NT, was an expensive flop, and not a few computer professionals see Microsoft software as "bug-infested" and unreliable. Gates decided in 1998 to re-organise the company under the banner of VV2 (Vision Version 2). It was split into eight autonomous units. Gates himself, while remaining at the Microsoft helm, has taken less of a hands-on approach in recent years. He devotes more of his time to work with the Bill and Melinda Gates Foundation, the world's richest.
Bill Gates does not belong to any university faculty. He doesn't consult or coach. Neither does he lecture. He is not a hermit and his thoughts on management have been made widely available, through his two books The Road Ahead (1995) and Business @ the Speed of Thought (1999). His involvement with his company and with the industry as a whole has always been transparent. People could see (some of) what he was doing at Microsoft.
He has always had quite a lot to say about strategy. In the manner of management gurus he has isolated six things that a company should do to achieve success in any market. It should:
1. Concentrate on a market with big potential and few competitors
2. Get in early and go in big
3. Set up a proprietary position
4. Protect that position using every method available
5. Aim for high gross margins or the highest available
6. Make customers an offer they find hard, if not impossible, to refuse
Microsoft is a knowledge company. Its assets are its highly-skilled and creative workers. It is held together by a digital nervous system (DNS) of e-mail, allowing instant connectivity. This also allowed a high degree of supervision to Gates when he was active. He could supervise and comment upon even the smallest detail of the work of individual employees.
Some visitors have likened Microsoft's headquarters to a university campus. There are
lots of opportunities for brain-storming, sharing ideas and generally interacting in as informal a way as possible. Gates has always sought to inject the organisation with vital components. There are five, all of which begin with the letter 'E':
- Enrichment - employees are attracted by high salaries and retained through generous option schemes
- Egalitarianism
- Empowerment
- E-mail
- Emphasis on Performance – employees' performances are assessed twice-yearly. They receive a mark on a one-to-five scale. A 'four' is extraordinarily good: a 'one' means they're fired.
Bill Gates is not a management guru in the sense of others. He does not preach, except to his own employees. He does not intimate that what works (or has worked) for Microsoft can be translated into success elsewhere. But his very success inevitably means that what he does at Microsoft is an object of study and emulation by others.
What makes Bill Gates influential global business thinker
William Henry Gates III (b. 1955) was born in Seattle. He won a place at Harvard but dropped out, partly through lack of confidence in his teachers. In 1976 his interest in electronics propelled him to found with his friend Paul Allen a company for writing software for micro-electronic devices called Microsoft. Their first product was a version of the programming language BASIC for the primitive Altair 8800, the first personal computer in the world.
Five years later they licensed an operating system MS DOS to IBM for use with that company's nascent personal computer. Gates and Allen retained the right to use and develop the system themselves. Gates had a mission, to put a personal computer (using Microsoft software and programming languages) on every desk and in every home. IBM felt that the PC was at most a fad or a toy. The personal computer market mushroomed throughout the 1980s and 1990s, and with it grew the success of Microsoft.
Bill Gates likes to portray himself as something of a techno-prophet, but neither he nor Microsoft have a sure Midas touch. He was at first dismissive of the Internet, seeing it as a geek's plaything. Once he realised his mistake he made a high-speed U-turn. The result has included Microsoft Outlook. Microsoft's operating system for networks and servers, Microsoft NT, was an expensive flop, and not a few computer professionals see Microsoft software as "bug-infested" and unreliable. Gates decided in 1998 to re-organise the company under the banner of VV2 (Vision Version 2). It was split into eight autonomous units. Gates himself, while remaining at the Microsoft helm, has taken less of a hands-on approach in recent years. He devotes more of his time to work with the Bill and Melinda Gates Foundation, the world's richest.
Bill Gates does not belong to any university faculty. He doesn't consult or coach. Neither does he lecture. He is not a hermit and his thoughts on management have been made widely available, through his two books The Road Ahead (1995) and Business @ the Speed of Thought (1999). His involvement with his company and with the industry as a whole has always been transparent. People could see (some of) what he was doing at Microsoft.
He has always had quite a lot to say about strategy. In the manner of management gurus he has isolated six things that a company should do to achieve success in any market. It should:
1. Concentrate on a market with big potential and few competitors
2. Get in early and go in big
3. Set up a proprietary position
4. Protect that position using every method available
5. Aim for high gross margins or the highest available
6. Make customers an offer they find hard, if not impossible, to refuse
Microsoft is a knowledge company. Its assets are its highly-skilled and creative workers. It is held together by a digital nervous system (DNS) of e-mail, allowing instant connectivity. This also allowed a high degree of supervision to Gates when he was active. He could supervise and comment upon even the smallest detail of the work of individual employees.
Some visitors have likened Microsoft's headquarters to a university campus. There are
lots of opportunities for brain-storming, sharing ideas and generally interacting in as informal a way as possible. Gates has always sought to inject the organisation with vital components. There are five, all of which begin with the letter 'E':
- Enrichment - employees are attracted by high salaries and retained through generous option schemes
- Egalitarianism
- Empowerment
- Emphasis on Performance – employees' performances are assessed twice-yearly. They receive a mark on a one-to-five scale. A 'four' is extraordinarily good: a 'one' means they're fired.
Bill Gates is not a management guru in the sense of others. He does not preach, except to his own employees. He does not intimate that what works (or has worked) for Microsoft can be translated into success elsewhere. But his very success inevitably means that what he does at Microsoft is an object of study and emulation by others.
Tuesday, July 21, 2009
Here is another funny cool interview:
Interviewer: Tell me about yourself.
Candidate: I am Rameshwar Kulkarni. I did my Tele Communication
engineering from BabanRao Dhole-Patil Institute of Technology.
Interviewer: BabanRao Dhole-Patil Institute of Technology? I had
never heard of this college before!
Candidate: Great! Even I had not heard of it before getting an
admission into it ..
What happened is - due to cricket world cup I scored badly! in
12th.I was getting a paid seat in a good college.
But my father said (I prefer to call him 'baap') - "I can not
invest so much of money".(The baap actually said - "I
will never waste so much of money on you"). So I had to join this
college.. Frankly speaking this name - BabanRao Dhole-Patil, can at the most
be
related to a Shetakari Mahavidyalaya.
Interviewer: ok, ok. It seems you have taken 6 years to complete
your engineering.
Candidate: Actually I tried my best to finish it in 4 years. But
you know, these cricket matches and football
world cup, and tennis tournaments. It is difficult to concentrate.
So I flunked in 2nd and 3rd year. So in all I took
4 + 2 = 7 years.
Interviewer: But 4+2 is 6.
Candidate: Oh, is it? You know I always had KT in maths. But I
will try to keep this in mind. 4+2 is 6, good,
thanks. These cricket matches really affect exams a lot. I think
they should ban it.
Interviewer: Good to know that you want cricket matches to be
banned.
Candidate: No, no... I am talking about Exams!!
Interviewer: Ok, What is your biggest achievement in life?
Candidate: Obviously, completing my Engineering. My mom never
thought I would complete it. In fact, when i
flunked in 3rd year, she was looking for a job for me in BEST (Bus
corporation in Maharashtra) through some relative.
Interviewer: Do you have any plans of higher study?
Candidate: he he he.. Are you kidding? Completing 'lower'
education itself was so much of pain!!
Interviewer: Let's talk about technical stuff. On which platforms
have you worked?
Candidate: Well, I work at SEEPZ, so you can say Andheri is my
current platform. Earlier I was at Vashi center. So Vashi was my platform
then. As you can see I have
experience of different platforms! (Vashi and Andheri are the places in
Mumbai)
Interviewer: And which languages have you used?
Candidate: Marathi, Hindi, English. By the way, I can keep quiet
in German, French, Russian and many other languages.
Interviewer: Why VC is better than VB?
Candidate: It is a common sense - C comes after B. So VC is a
higher version than VB. I heard very soon they
are coming up with a new language VD!
Interviewer: Do you know anything about Assembly Language?
Candidate: Well, I have not heard of it. But I guess, this is the
language our ministers and MPs use in assembly.
Interviewer: What is your general project experience?
Candidate: My general experience about projects is - most of th! e
times they are in pipeline!
Interviewer: Can you tell me about your current job?
Candidate: Sure, Currently I am working for Bata InfoTech ltd.
Since joining BIL, I am on Bench. Before joining
BIL, I used to think that Bench was another software like Windows.
Interviewer: Do you have any project management experience?
Candidate: No, but I guess it shouldn't be difficult. I know
Word and Excel. I can talk a lot. I know how to
dial for International phone call and use speaker facility. And
very important - I know few words like -
'Showstoppers ' , 'hotfixes',
'SEI-CMM','quality','versioncontrol','deadlines' , 'Customer
Satisfaction' etc. Also I can blame others for my mistakes!
Interviewer: What are your expectations from our company?
Candidate: Not much.
1. I should at least get 40,000 in hand.
2. I would like to work on a live EJB project. But it should not
have deadlines. I personally feel that pressure affects natural talent.
3. I believe in flexi-timings.
4. Dress code is against basic freedom, so I would like to wear
t-shirt and jeans.
5. We must have sat-sun off. I will suggest Wednesday off also, so
as to avoid breakdown due to overwork.
6. I would like to go abroad 3 times a year on short term
preferably 1-2 months) assignments. Personally I prefer
US, Australia and Europe. But considering the fact that there is Olympics
coming up in
China in the current year, I don't mind
going there in that period. As you can see I am modest and don't
have many expectations. So can I assume my selection?
Interviewer: he he he ha ha ha. Thanks for your interest in our
organization. In fact I was never entertained so much before. Welcome to
INFOSYS..
The fellow was appointed in a newly created section 'Stress Management' in
the HRD of Infosys.
Interviewer: Tell me about yourself.
Candidate: I am Rameshwar Kulkarni. I did my Tele Communication
engineering from BabanRao Dhole-Patil Institute of Technology.
Interviewer: BabanRao Dhole-Patil Institute of Technology? I had
never heard of this college before!
Candidate: Great! Even I had not heard of it before getting an
admission into it ..
What happened is - due to cricket world cup I scored badly! in
12th.I was getting a paid seat in a good college.
But my father said (I prefer to call him 'baap') - "I can not
invest so much of money".(The baap actually said - "I
will never waste so much of money on you"). So I had to join this
college.. Frankly speaking this name - BabanRao Dhole-Patil, can at the most
be
related to a Shetakari Mahavidyalaya.
Interviewer: ok, ok. It seems you have taken 6 years to complete
your engineering.
Candidate: Actually I tried my best to finish it in 4 years. But
you know, these cricket matches and football
world cup, and tennis tournaments. It is difficult to concentrate.
So I flunked in 2nd and 3rd year. So in all I took
4 + 2 = 7 years.
Interviewer: But 4+2 is 6.
Candidate: Oh, is it? You know I always had KT in maths. But I
will try to keep this in mind. 4+2 is 6, good,
thanks. These cricket matches really affect exams a lot. I think
they should ban it.
Interviewer: Good to know that you want cricket matches to be
banned.
Candidate: No, no... I am talking about Exams!!
Interviewer: Ok, What is your biggest achievement in life?
Candidate: Obviously, completing my Engineering. My mom never
thought I would complete it. In fact, when i
flunked in 3rd year, she was looking for a job for me in BEST (Bus
corporation in Maharashtra) through some relative.
Interviewer: Do you have any plans of higher study?
Candidate: he he he.. Are you kidding? Completing 'lower'
education itself was so much of pain!!
Interviewer: Let's talk about technical stuff. On which platforms
have you worked?
Candidate: Well, I work at SEEPZ, so you can say Andheri is my
current platform. Earlier I was at Vashi center. So Vashi was my platform
then. As you can see I have
experience of different platforms! (Vashi and Andheri are the places in
Mumbai)
Interviewer: And which languages have you used?
Candidate: Marathi, Hindi, English. By the way, I can keep quiet
in German, French, Russian and many other languages.
Interviewer: Why VC is better than VB?
Candidate: It is a common sense - C comes after B. So VC is a
higher version than VB. I heard very soon they
are coming up with a new language VD!
Interviewer: Do you know anything about Assembly Language?
Candidate: Well, I have not heard of it. But I guess, this is the
language our ministers and MPs use in assembly.
Interviewer: What is your general project experience?
Candidate: My general experience about projects is - most of th! e
times they are in pipeline!
Interviewer: Can you tell me about your current job?
Candidate: Sure, Currently I am working for Bata InfoTech ltd.
Since joining BIL, I am on Bench. Before joining
BIL, I used to think that Bench was another software like Windows.
Interviewer: Do you have any project management experience?
Candidate: No, but I guess it shouldn't be difficult. I know
Word and Excel. I can talk a lot. I know how to
dial for International phone call and use speaker facility. And
very important - I know few words like -
'Showstoppers ' , 'hotfixes',
'SEI-CMM','quality','versioncontrol','deadlines' , 'Customer
Satisfaction' etc. Also I can blame others for my mistakes!
Interviewer: What are your expectations from our company?
Candidate: Not much.
1. I should at least get 40,000 in hand.
2. I would like to work on a live EJB project. But it should not
have deadlines. I personally feel that pressure affects natural talent.
3. I believe in flexi-timings.
4. Dress code is against basic freedom, so I would like to wear
t-shirt and jeans.
5. We must have sat-sun off. I will suggest Wednesday off also, so
as to avoid breakdown due to overwork.
6. I would like to go abroad 3 times a year on short term
preferably 1-2 months) assignments. Personally I prefer
US, Australia and Europe. But considering the fact that there is Olympics
coming up in
China in the current year, I don't mind
going there in that period. As you can see I am modest and don't
have many expectations. So can I assume my selection?
Interviewer: he he he ha ha ha. Thanks for your interest in our
organization. In fact I was never entertained so much before. Welcome to
INFOSYS..
The fellow was appointed in a newly created section 'Stress Management' in
the HRD of Infosys.
The most inspiring video: It does not matter how many times u fall down, just stand up each time and try again.. what matters is the end result.
Here is the most wonderful video:
http://www.maniacworld.com/are-you-going-to-finish-strong.html
Here is the most wonderful video:
http://www.maniacworld.com/are-you-going-to-finish-strong.html
Friday, July 17, 2009
About Me
Here is a complete description about myself - for all those who want to know me.. Here I'm about to do a lot of sweet talk about myself.
I am a person with big dreams, and always look for ways to reach and achieve them. A very determined person - I give my best to achieve my goals. And thanks to God I have also been fairly lucky till date. God does listen to me..
I want to live life to the fullest and love the fun, zeal and challenges that life has to offer.. Well a 'tadka' of challenges makes life interesting.. Well obviously this shows I have tremendous risk appetite. I love to experiment new ideas, try out new and interesting things, and I am also not afraid of making small mistakes. Because God has given me enough courage and strength to stand back if I fall.. Well obviously major mistakes / failures need to be avoided and I do try to keep cautious about that, since I don't like to fail.
There are also a few people in my life who have immensely influenced me. Professionally I have been trained under the best people. I have learnt many skills from them. I shall always be grateful to them and it's a commitment that I have made to myself.. that I shall be always bring pride to them for our association. God help me in returning back what I have taken from your angels.
Rest I am a fairly honest person, good person, always help others - always like to keep everybody happy. Small trifles - r never what I create an issue of .. Low in materialism, 'money' is just 'expenditure power' for me, and my expenses are not very high.. I want to earn a lot of money as a mark of achievement and power. But it does not and can not take a more important position than that. Any day, human emotions, people respect would be more important for me.
Also, to my relationships, friendships - I give my 100% and expect 100% in return. It is difficult to give ur 100% and not expect anything from the other side.. I don't believe in the concept - karm kiye jao fal ki ichha mat karo. I would rather prefer to b at a place where I am able to give my complete best as well as get equivalent returns in return.. That is also my biggest weakness that I resent when my expectations do not meet.
Here is a complete description about myself - for all those who want to know me.. Here I'm about to do a lot of sweet talk about myself.
I am a person with big dreams, and always look for ways to reach and achieve them. A very determined person - I give my best to achieve my goals. And thanks to God I have also been fairly lucky till date. God does listen to me..
I want to live life to the fullest and love the fun, zeal and challenges that life has to offer.. Well a 'tadka' of challenges makes life interesting.. Well obviously this shows I have tremendous risk appetite. I love to experiment new ideas, try out new and interesting things, and I am also not afraid of making small mistakes. Because God has given me enough courage and strength to stand back if I fall.. Well obviously major mistakes / failures need to be avoided and I do try to keep cautious about that, since I don't like to fail.
There are also a few people in my life who have immensely influenced me. Professionally I have been trained under the best people. I have learnt many skills from them. I shall always be grateful to them and it's a commitment that I have made to myself.. that I shall be always bring pride to them for our association. God help me in returning back what I have taken from your angels.
Rest I am a fairly honest person, good person, always help others - always like to keep everybody happy. Small trifles - r never what I create an issue of .. Low in materialism, 'money' is just 'expenditure power' for me, and my expenses are not very high.. I want to earn a lot of money as a mark of achievement and power. But it does not and can not take a more important position than that. Any day, human emotions, people respect would be more important for me.
Also, to my relationships, friendships - I give my 100% and expect 100% in return. It is difficult to give ur 100% and not expect anything from the other side.. I don't believe in the concept - karm kiye jao fal ki ichha mat karo. I would rather prefer to b at a place where I am able to give my complete best as well as get equivalent returns in return.. That is also my biggest weakness that I resent when my expectations do not meet.
Tuesday, July 14, 2009
6 questions to ask while starting a business
http://www.inc.com/ss/6-questions-ask-starting-business#0
http://www.inc.com/ss/6-questions-ask-starting-business#0
Sunday, July 12, 2009
AIR INDIA
The corporate mistakes of Air India is striking and is worth writing of..
Air India's financial health was poor and as a means of caution the management deferred the salaries of the employees for the month of June / July. But the move back-fired as it alerted all the vendors, lenders and other service providers.
The Frankfurt Airport, the carrier's international hub of operations is demanding the bank guarantees for continuation of services.
Civil Aviation Minister Mr. Praful Patel has held the company employees responsible. Air India has accumulated a loss of Rs. 7200 Cr. upto March'09.
I hold the management responsible for the crisis...
The corporate mistakes of Air India is striking and is worth writing of..
Air India's financial health was poor and as a means of caution the management deferred the salaries of the employees for the month of June / July. But the move back-fired as it alerted all the vendors, lenders and other service providers.
The Frankfurt Airport, the carrier's international hub of operations is demanding the bank guarantees for continuation of services.
Civil Aviation Minister Mr. Praful Patel has held the company employees responsible. Air India has accumulated a loss of Rs. 7200 Cr. upto March'09.
I hold the management responsible for the crisis...
CYBER INSURANCE
Cyber insurance is fast becoming a necessity for companies. For the Insurers it promises to open up a new avenue of growth.
Why cyber insurance
Let's face it - what is the most dreaded thing today? Fire? Well, the insurers take care of that, don't they? Death of the director, maybe… Nope the insurers are there again with their key person insurance. Loss of data, right? Well we all have excellent disaster recovery plans - and the back up sits in such idyllic locations as Alaska, so no problem there either! Traditional insurance covers just about everything a Brick and Mortar Company can face today.
But what if someone defaces your site with inflammatory messages leaving everybody visiting your site doubting your credibility? What if someone steals your cyber money? If someone introduces a virus into your system and all your partner companies' systems go kaput, who answers? Talking of which, who do you think is responsible should a partner's system inadvertently infect your site with a virus? When someone steals your customer information, are you responsible for the breach?
The Ecommerce world thus poses a range of risks - fraud, theft, espionage and a million other such things.
It's clear, the more technology advances and increases the quality of life, the more will the cyber crime brains help keep the economy from becoming hyper efficient.
A recent CSI/ FBI survey*** of 223 companies that were able to estimate their financial losses due to cyber crime, revealed the figure to be a whopping $460 million. Theft of proprietary information accounted for 37% of the estimated loss while fraud set the companies back by about 25%.
The risk is undoubtedly there and the need for insurance imminent. The question we need to ask is whether there something we can do about it. The answer seems to be cyber insurance.
The hour has produced the product, but it's still as naïve and immature as a newborn baby. But at least, it's begun and a good start is half done. So let's leap into the brave new world of cyber insurance and how the future looks. Before we do so however, we need to understand the evolving relationship between the Internet and the Insurance industry.
Major Players and Products in market
AIG, Chubb, Marsh and a host of others have already entered the fray with a host of policies covering different types and levels of cyber risk. While third party insurance is more commonly offered, first party products have also begun to appear.
Recent reports from studies by reputed bodies indicate that Ecommerce Insurance would generate $2.5 Billion in premium by 2005. In anticipation of this boom, the players have started offering products that cover all the key risks specific to the new economy.
A presentation from AIG summarizes the risks which are most relevant today* - Web Content based liability (libel, slander, copyright and trademark infringement), Professional Errors and Omissions Liability such as in the rendering or failing to render professional services for others for a fee and Network Security Liability & Loss. All these risks can now be covered, albeit in a limited way.
Trends and Issues
While the industry is now getting a good handle on the key risks that need to be insured, the science of quantifying cyber risks is still in its infancy.Traditionally, the actuaries had a lot of historical data, which helped them predict the incidence of risks to a nicety. Errors in estimation were few and far in between. The definition of the fine print in the policies was rather water tight too - both the insurers and the companies knew what was being offered and what wasn't (sure there were quite a few disputed claims - but then now we are stepping into the lawyer market!).
With cyber insurance, none of this is true. Historical data is scarce, and what little is there is not cast in stone either. Estimations of damage due to virus attacks vary dramatically. The perceptions of possible future risks are equally volatile. Companies and the insurers have no real answers.
The result is that we have rather expensive guesstimates - in 2001, the average annual cyber policy premium was $45,000 with a $10 million liability limit. One other issue is the rather low liability limit. While liability coverage of over $100 million may interest a corporate behemoth, cyber insurance today offers a very low liability coverage ($10M to $25M).
Endpoint
The question though is how cyber insurance will grow over the years. It is clear that lack of enough data and the resulting uncertainty is proving to be a bit of a dampener. The smaller companies are content with lower coverage but at low premiums while the corporate types may be willing to part with sizeable premiums but need large coverage. The insurance companies today are able to provide only limited coverage at rather exorbitant prices.
The solution seems to be in the hands of the IT consultants. These people understand technology better than most and need to be in a position to evaluate future risks to survive in the industry. Thus, they are perhaps best equipped to help the insurance companies predict the risks and define premiums.
Perhaps comprehensive technological audits in view of a company's current technological infrastructure and future Ecommerce needs are the key to success, perhaps not. One thing is however clear - a "brave new world" is unfolding. There will be successes and failures, but the biggest victors will be those who get their hands dirty first.
Cyber insurance is fast becoming a necessity for companies. For the Insurers it promises to open up a new avenue of growth.
Why cyber insurance
Let's face it - what is the most dreaded thing today? Fire? Well, the insurers take care of that, don't they? Death of the director, maybe… Nope the insurers are there again with their key person insurance. Loss of data, right? Well we all have excellent disaster recovery plans - and the back up sits in such idyllic locations as Alaska, so no problem there either! Traditional insurance covers just about everything a Brick and Mortar Company can face today.
But what if someone defaces your site with inflammatory messages leaving everybody visiting your site doubting your credibility? What if someone steals your cyber money? If someone introduces a virus into your system and all your partner companies' systems go kaput, who answers? Talking of which, who do you think is responsible should a partner's system inadvertently infect your site with a virus? When someone steals your customer information, are you responsible for the breach?
The Ecommerce world thus poses a range of risks - fraud, theft, espionage and a million other such things.
It's clear, the more technology advances and increases the quality of life, the more will the cyber crime brains help keep the economy from becoming hyper efficient.
A recent CSI/ FBI survey*** of 223 companies that were able to estimate their financial losses due to cyber crime, revealed the figure to be a whopping $460 million. Theft of proprietary information accounted for 37% of the estimated loss while fraud set the companies back by about 25%.
The risk is undoubtedly there and the need for insurance imminent. The question we need to ask is whether there something we can do about it. The answer seems to be cyber insurance.
The hour has produced the product, but it's still as naïve and immature as a newborn baby. But at least, it's begun and a good start is half done. So let's leap into the brave new world of cyber insurance and how the future looks. Before we do so however, we need to understand the evolving relationship between the Internet and the Insurance industry.
Major Players and Products in market
AIG, Chubb, Marsh and a host of others have already entered the fray with a host of policies covering different types and levels of cyber risk. While third party insurance is more commonly offered, first party products have also begun to appear.
Recent reports from studies by reputed bodies indicate that Ecommerce Insurance would generate $2.5 Billion in premium by 2005. In anticipation of this boom, the players have started offering products that cover all the key risks specific to the new economy.
A presentation from AIG summarizes the risks which are most relevant today* - Web Content based liability (libel, slander, copyright and trademark infringement), Professional Errors and Omissions Liability such as in the rendering or failing to render professional services for others for a fee and Network Security Liability & Loss. All these risks can now be covered, albeit in a limited way.
Trends and Issues
While the industry is now getting a good handle on the key risks that need to be insured, the science of quantifying cyber risks is still in its infancy.Traditionally, the actuaries had a lot of historical data, which helped them predict the incidence of risks to a nicety. Errors in estimation were few and far in between. The definition of the fine print in the policies was rather water tight too - both the insurers and the companies knew what was being offered and what wasn't (sure there were quite a few disputed claims - but then now we are stepping into the lawyer market!).
With cyber insurance, none of this is true. Historical data is scarce, and what little is there is not cast in stone either. Estimations of damage due to virus attacks vary dramatically. The perceptions of possible future risks are equally volatile. Companies and the insurers have no real answers.
The result is that we have rather expensive guesstimates - in 2001, the average annual cyber policy premium was $45,000 with a $10 million liability limit. One other issue is the rather low liability limit. While liability coverage of over $100 million may interest a corporate behemoth, cyber insurance today offers a very low liability coverage ($10M to $25M).
Endpoint
The question though is how cyber insurance will grow over the years. It is clear that lack of enough data and the resulting uncertainty is proving to be a bit of a dampener. The smaller companies are content with lower coverage but at low premiums while the corporate types may be willing to part with sizeable premiums but need large coverage. The insurance companies today are able to provide only limited coverage at rather exorbitant prices.
The solution seems to be in the hands of the IT consultants. These people understand technology better than most and need to be in a position to evaluate future risks to survive in the industry. Thus, they are perhaps best equipped to help the insurance companies predict the risks and define premiums.
Perhaps comprehensive technological audits in view of a company's current technological infrastructure and future Ecommerce needs are the key to success, perhaps not. One thing is however clear - a "brave new world" is unfolding. There will be successes and failures, but the biggest victors will be those who get their hands dirty first.
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