With effect from January 1, 2005, many U.S. businesses that collect personal information from their customers will face increased data security requirements. The new requirements add yet more regulation to the area of consumer privacy, an area that saw substantial legislative activity in 2004.

Innovators Turn to Asset-Based Financing for Growth
Submitted by Silicon Valley Bank

In response to the more discriminating fundraising environment of the new millennium, some later-stage technology companies are utilizing a financing source previously reserved for manufacturing, retail, and other sectors of the “old economy.” Asset-based lenders can accommodate borrowers whose risk profile may be outside of a bank’s comfort zone, through their knowledge of and control over the borrower’s collateral. These lenders view easily convertible assets and sound financial controls as remedies for the bruises that a challenging marketplace inflicts on a borrower’s balance sheet.

An Enterprising Approach to Cyber Risk Management
Submitted by St. Paul Travelers

Cyber risks are a growing business threat. Computer viruses, software flaws, and hackers continue to chip away at vulnerabilities in computer networks. The 2004 Computer Crime and Security survey, conducted by the Computer Security Institute and the FBI, showed that a large number of U.S. businesses and government agencies are experiencing computer security breaches that result in huge, financial losses. Although worms, viruses and hackers receive widespread media attention, the reality is that businesses simply don’t talk much about how to manage cyber risk.