Data Breach Response Techniques Presented at February Dinner Meeting
Branch and Deposit Profitability Strategies Featured at Mini-Session
Maintaining adequate cyber security to protect an institution’s financial
data is now a significant priority on the minds of financial managers. The
Chapter’s February Dinner Meeting featured a very informative and contemporary
dinner program entitled Cyber Liability Insurance and How to Respond to a Breach.
The program was presented by John Lawrence, Director Financial Institution Services
at M&T Insurance Agency, a division of M&T Bank. The event was held at the Stony Hill
Inn in Hackensack, N.J. on February 17, 2016.
Featured dinner speaker John Lawrence, M&T Insurance Agency, presents Cyber Liability Insurance and How to Respond to a Breach
Chapter President Brian McCourt welcomes the Membership to the Febuary Dinner Meeting.
John Lawrence outlines the components of the typical data breach cycle followed by recommended procedures to avoid a data breach.
John described the coverages provided by cyber insurance and compared the coverage to the
more typical general liability, property and auto insurance policies. He explained how cyber
insurance is composed of first party and third party liability insuring agreements designed
to protect an institution’s network and information, communications and media as well as
provide reimbursement for crisis management expenses and security breach and remediation costs.
He noted that the average costs of a typical data breach exceed $1.6 million consisting of
crisis management, legal defense and final settlement. John also noted that human error or a
negligent employee are the cause of more than 75% of data breaches.
John outlined the components of the typical data breach cycle. He emphasized that
“stopping the intrusion” is the primary response followed by initializing a legal review,
conducting forensic analysis, managing public relations, informing the customers and
monitoring fraud activity. John recommended a series of procedures that institutions should
implement to protect against a cyber data breach. He concluded by answering a number of
insightful questions from the membership.
Branch and Deposit Profitability: 2006 vs. Today was the topic of the afternoon mini-session
presented by Gregg Wagner, Managing Director and Jeff Marsico, Executive Vice President of
the Kafafian Group. Each of the speakers has more than 20 years of experience providing key
management solutions to the community banking industry. The speakers described today’s
“sorry state of branch profitability” which has declined significantly over the past ten years.
They noted a 63% decline in direct branch profits and a 6.3% decline in the number of nationwide
branches compared to 2006. Historically low interest rates, smaller asset-liability spreads and
dramatically smaller fee income were described as the “culprits” of the decline.
Jeff and Gregg clearly showed how the current branch unit profitability has declined vs. 2006. The
average deposits in each branch has increased due to a smaller number of branches. The dramatically
smaller spread from low interest rates combined with lower fee income has reduced net pre-tax income
from a significant profit in 2006 to an average net loss in 2015. The speakers concluded by providing
key takeaways to improve branch profitability.
Topics and Speakers
Cyber Liability Insurance and How to Respond to a Breach
Branch and Deposit Profitability: 2006 vs. Today
Chapter Secretary, Sal Zerilli (2nd l.) smiles with Chapter Members during the cocktail hour.
Branch and Deposit Profitability
was presented by Jeff Marsico (pictured) and Gregg Wagner of the Kafafian Group, at the mini-session.
Members earn valuable CPE credits while attending the free mini-session.