Surety Bond Quarterly - Fall 2014 - 29

NASBP/ACORD Standard Form Project Gains Momentum
NASBP conducted an IT Survey of its members in 2013 and found that more than half (52%) of respondents indicated
it would be useful or very useful to be able to input data using Association for Cooperative operations research and
Development (ACorD) standards for an industry form in one location rather than re-keying it into other applications.
A follow-up Industry Sign-on letter showing support for the use of ACorD standards in NASBP forms sent to the
NASBP membership, partner associations, and vendors resulted in over 120 responses. Among those responses,
Greg Davenport, Senior Vice President of operations and Strategy at liberty Mutual Surety, was the very first to
provide NASBP with the support letter. He commented, "liberty Mutual is pleased to work together with NASBP to
bring additional standardization to our industry. With this initiative we will be able to enhance our data exchange
capabilities, making it easier for producers to do business with us by using their own systems."
This summer the NASBP Automation and Technology Committee took a giant step towards creating data exchange
standards for the surety industry. NASBP is leading the industry effort to improve information exchange among bond
producers, sureties and obligees, regardless of their underlying system. The Bid Bond request Form is expected
to be available in the ACorD Forms library by January 2015, and the remaining NASBP Tool Kit Forms will follow
later that year.
For producers and surety companies, this means data exchange will be enhanced using ACorD standards to
facilitate upload and download capabilities, resulting in the "single entry" of data into a form, software, or service.
NASBP realizes the importance of paper forms and will maintain its NASBP Producer's Toolkit forms with the NASBP
logo online at www.nasbp.org/toolkit. Vendors and surety companies that are ACorD members have the capability
to use and distribute these forms. If you have any questions, or would like to join the Forms Working Group, contact
Dave Golden, NASBP Director of Technology, at dgolden@nasbp.org.
tarnishing the trust with clients and
shareholders it took years to build.
Those are the stakes. Granted,
keeping your business's data secure
can seem daunting. Every week we
hear of another titan of business
stumbling because of some online
attack or security mishap. Target,
PlayStation, Verizon and others
have all lost customer data and
felt the resulting backlash. Without
proper safeguards in place, data and
security breaches are not a matter
of if, but when. Fortunately, there
are actions we can take to keep
valuable data secure.
ENCRYPTION AS A
BUSINESS TOOL
Nick Newton, chair of the NASBP
Automation and Technology Committee
and president of Newton
Surety Services, llC of Stillwater,
Minn., said, "It used to be difficult to
balance the level of security with ease
of use-but today there are many
options available for non-technical
agencies. There is very little reason
why every agency should not be
using encryption technology for the
protection of their clients' sensitive
data and to limit their liability."
Among the many tools available to
businesses to safeguard their corporate
data, "encryption" is one of the
strongest. Encryption is the process
of scrambling information so that it
is unreadable to all but its intended
viewer. Quite simply, encryption
keeps the wrong people from seeing
private information.
The process of encrypting data is
not a new concept. In war, secure
communications are vital to achieve
victory. In World War II, German military
forces in the field and on the
sea used a coding machine called the
"Enigma" to communicate covertly
with headquarters. By keeping its
communications encrypted, its movements
were stealthy, and over time
the Axis U-boats wreaked havoc
on the Allied Navy. After finally breaking
the code, the Allies could decrypt
the Axis communications and determine
the locations of enemy submarines.
The control of the seas and the
tide of the war rested on intercepted
communications. Allied Commander
Dwight Eisenhower claimed breaking
the ENIGMA code to have been "decisive"
to victory.
In business, as in war, people want
your information and are willing to
steal it.
THE USES OF ENCRYPTION
Due to the complexity involved,
many technologies can be used to
encrypt data on several levels. In
addition to data, encrypting devices
allow only users with a "key" to
see the information on a particular
device. Even if it was stolen or lost,
the data would be unreadable and,
therefore, safe. Encrypting websites
keeps the data entered on it from
being intercepted between the user
and the website. Encrypting communications
such as email enables
only the sender and receiver to view
the content.
ENCRYPTION AND EMAIL
Email is by far the easiest, most convenient
method of transmitting information
in a business setting. As such,
it is one of the greatest vulnerabilities
we have. In developing risk management
and security policies-not to
NatioNal assoCiatioN of surety BoNd ProduCers | WWW.NASBP.orG 29
http://www.nasbp.org/toolkit http://WWW.NASBP.orG

Surety Bond Quarterly - Fall 2014

Table of Contents for the Digital Edition of Surety Bond Quarterly - Fall 2014

2014-2015 NASBP Executive Committee
NASBP Upcoming Meetings and Workshops
From the CEO: Successful construction relationships require the right relationship
Practical Insights: What you need to know - bond and lien notice pitfalls
SuretyLearn.org: An invaluable resource
Advocacy update
Nov. 12-3 Conference addresses the twists and turns of best value selection - and other timely topics
Surety Bond Guarantee Program changes for the better
Front Line Underwriting: Choosing a quality construction CPA
Getting in the weeds: Requirements of marijuana surety bonds
Encrypting email
It’s Finally Here: The new revenue recognition standard
CPAs standing in the GAAP
Resource Directory
Index to Advertisers
Surety Bond Quarterly - Fall 2014 - cover1
Surety Bond Quarterly - Fall 2014 - cover2
Surety Bond Quarterly - Fall 2014 - 3
Surety Bond Quarterly - Fall 2014 - 4
Surety Bond Quarterly - Fall 2014 - 5
Surety Bond Quarterly - Fall 2014 - 6
Surety Bond Quarterly - Fall 2014 - NASBP Upcoming Meetings and Workshops
Surety Bond Quarterly - Fall 2014 - From the CEO: Successful construction relationships require the right relationship
Surety Bond Quarterly - Fall 2014 - 9
Surety Bond Quarterly - Fall 2014 - Practical Insights: What you need to know - bond and lien notice pitfalls
Surety Bond Quarterly - Fall 2014 - 11
Surety Bond Quarterly - Fall 2014 - SuretyLearn.org: An invaluable resource
Surety Bond Quarterly - Fall 2014 - 13
Surety Bond Quarterly - Fall 2014 - Advocacy update
Surety Bond Quarterly - Fall 2014 - 15
Surety Bond Quarterly - Fall 2014 - Nov. 12-3 Conference addresses the twists and turns of best value selection - and other timely topics
Surety Bond Quarterly - Fall 2014 - 17
Surety Bond Quarterly - Fall 2014 - Surety Bond Guarantee Program changes for the better
Surety Bond Quarterly - Fall 2014 - 19
Surety Bond Quarterly - Fall 2014 - 20
Surety Bond Quarterly - Fall 2014 - 21
Surety Bond Quarterly - Fall 2014 - Front Line Underwriting: Choosing a quality construction CPA
Surety Bond Quarterly - Fall 2014 - 23
Surety Bond Quarterly - Fall 2014 - 24
Surety Bond Quarterly - Fall 2014 - 25
Surety Bond Quarterly - Fall 2014 - Getting in the weeds: Requirements of marijuana surety bonds
Surety Bond Quarterly - Fall 2014 - 27
Surety Bond Quarterly - Fall 2014 - Encrypting email
Surety Bond Quarterly - Fall 2014 - 29
Surety Bond Quarterly - Fall 2014 - 30
Surety Bond Quarterly - Fall 2014 - 31
Surety Bond Quarterly - Fall 2014 - It’s Finally Here: The new revenue recognition standard
Surety Bond Quarterly - Fall 2014 - 33
Surety Bond Quarterly - Fall 2014 - CPAs standing in the GAAP
Surety Bond Quarterly - Fall 2014 - 35
Surety Bond Quarterly - Fall 2014 - 36
Surety Bond Quarterly - Fall 2014 - 37
Surety Bond Quarterly - Fall 2014 - 38
Surety Bond Quarterly - Fall 2014 - Resource Directory
Surety Bond Quarterly - Fall 2014 - 40
Surety Bond Quarterly - Fall 2014 - 41
Surety Bond Quarterly - Fall 2014 - 42
Surety Bond Quarterly - Fall 2014 - 43
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Surety Bond Quarterly - Fall 2014 - 56
Surety Bond Quarterly - Fall 2014 - 57
Surety Bond Quarterly - Fall 2014 - Index to Advertisers
Surety Bond Quarterly - Fall 2014 - cover3
Surety Bond Quarterly - Fall 2014 - cover4
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