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Information and Network Technology Risk Management Checklist

For Information and Network Technology Business Enterprises

If your answer to any of these questions is "no," then you may have a gap in your Information and Network Technology risk management program.

CONTRACTS AND AGREEMENTS

  • Does legal counsel review all contracts, orders, and license and service agreements?
  • Do you always use a standard contract?
  • Do you limit your liability in all contracts to avoid consequential loss, punitive damages,
  • stipulated damages or liquidated damages?
  • Do you include warranties and other disclaimers in your contracts and promotional material?
  • Do all disclaimers and limitations of liability in your contracts conform to applicable legal requirements?
  • Are all warranties specific and realistic?
  • Do your contracts include a severability clause, arbitration clause and "force majeure" wording?
  • Do your contracts ensure that all parties agree to the specific expectations, promises and contingencies regarding the performance of the contract?
  • Do you include RFPs and contract performance obligations?
  • Do you confirm whether or not critical employees are expected to be present throughout the course of the contract?
  • Are your contracts specific regarding agreed-upon definitions, performance specifications and obligations, timetables, dealing with changes and dispute resolution procedures?
  • Do you document any changes made to product and service specifications and deliverables?
  • Do you seek to implement longer-term projects under multiple short-term contracts?
  • For longer-term contracts, do you conduct a thorough risk assessment of the entire project?

QUALITY AND SUPPORT OF PRODUCTS AND SERVICES

  • Do your quality control procedures include the following:
    • Alpha testing
    • Beta testing
    • Formal customer acceptance procedures
    • Prototype development
    • Statistical process control
    • Vendor certification process
    • Total quality management
    • A formal product recall plan
    • Products or services produced to nationally or internationally accepted standards (e.g. IEE, DOD, CMM, ISO and FDA)
    • Retention of critical contracts, documents and records for clearly defined time standards
    • Written and formally implemented quality control program
  • Do you communicate plans to discontinue producing a product or to discontinue its service to all customers?
  • Do your contracts limit your liability in the event one of your outsourced suppliers fails to deliver as promised?
  • Do you carefully review the prior liabilities and loss experience generated by any organisations being considered for merger or acquisition?

OPERATIONAL CONTROLS

  • Does legal counsel review all advertising and marketing materials with regard to the promises explicitly made or implied to customers?
  • Are you cautious of changing your accounts receivable collection procedures?
  • Do you seek legal counsel’s assistance in developing sales and marketing training programs?
  • Do you require suppliers, subcontractors and vendors supplying or doing work for you to have liability insurance including E&O policies?
  • Do you obtain certificates of insurance from subcontractors and vendors?

NETWORKING ISSUES

  • Do you have in place a formal security program that is regularly updated, documented and adhered to by your staff?
  • Have you reviewed the encryption, firewalls, virus protection, security protocols and intrusion detection used to safeguard the data of others stored on your networks and servers?
  • Has an individual or team been assigned ongoing responsibility for monitoring security threats?
  • Do you invest in regular, frequent network vulnerability scanning by an outside vendor?
  • Do you record and investigate all security threats and incidents?
  • Do you have in place a formal disaster recovery plan?
  • Do you have in place a crisis management plan?
  • Have you established access authorisation procedures for all of your systems that prevent former employees from accessing your systems?
  • Do you conduct background checks of employees and potential employees?
  • Do you provide all contractors and employees with security training commensurate with their level of access?

NETWORK RELIABILITY, REDUNDANCY AND AVAILABILITY

  • Do you adhere to best practices with regard to architecture design?
  • Have you designed your network in such a way that traffic cannot be lost or interrupted due to a break in the network?
  • Are you capable of backing up or mirroring customer data on another part of the network?
  • Does the design of your redundant network allow for load balancing in times of peak capacity?

DISPUTES AND ALLEGATIONS OF NON-PERFORMANCE

  • Do you carefully analyse all non-performance losses, claims and litigation as well as their causes?
  • If you have had product rollbacks or recalls in the past, have you documented why they occurred and the remedies used for resolving customer loss of use?
  • Do you examine and respond to the causes of any contract delays?
  • Do you have frequent and open discussions with your customers regarding the viability of any project as it progresses?
  • Do you have a document retention program in place to enable reference to contract and related documents if a dispute arises?
  • Do you record the identity of employees who deal with customers in relation to particular contracts?

Please complete the below online form for more information about insuring these Information and Network Technology management liability risks.



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