Managing Multifamily Risk
We asked the industry to share their top concerns.
What keeps you up at night? Chances are no two multifamily executives have exactly the same business headaches. But, these days it’s likely that data breach is up toward the top of the list—and with good reason. The average data breach can cost an organization approximately $5.4 million.
Meanwhile, the hackers continue to find new ways to stay a few steps ahead of everyone else. The National Multifamily Housing Council has been stressing this message in recent months. As Jeanne McGlynn Delgado, vice president of business operations and risk management policy at NMHC, pointed out to MHN readers in her guest column, the recent spate of high-profile data breaches sharply underscores the fact that no business, regardless of size or specialty, is immune from the threat of a cyber attack.
“Hackers are becoming more sophisticated and the risk of an attack is no longer a question of if—but when,” Delgado told MHN. “Apartment owners and managers collect, use and maintain vast amounts of highly sensitive, personal data. The data that is collected from renters and employees, and through operational functions, can be a treasure trove to a cyber criminal.” NMHC has come up with seven suggested steps to include in a cyber security and response program.
These key principles were inspired by the Federal Trade Commission’s Protecting Personal Information, A Guide for Business. The suggestions include appointing a data breach planning and response team; assessing vulnerabilities; scaling down stored data; and purchasing a cyber insurance policy. Read Delgado’s entire column here. For more insights into top risk concerns, don’t miss this month’s Risk Management Roundtable. MHN Contributing Editor Keith Loria talks to executives at Mascia Development, Village Green, Cirrus Asset Management, Willis Group and Stern Risk Partners.
Along with cyber exposure and data breach, extreme weather is also a big concern as well as “resident sponsored events” that create damage to a property as a result of fire, smoke, explosion or sewer backup. While the damage is the responsibility of the resident, many times they do not have the financial ability to pay or adequate insurance. What’s been keeping you up at night? Please share your risk management nightmare(s) with us.
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