Smart Homes and Buildings: Risks and Opportunities
Although the use of smart technology in homes and buildings in Latin America is just beginning, it is a reality that the trend is going in that direction Rev Interactive SDN BHD, since the use of these technologies occupies more and more space on a day-to-day basis not only in individuals but also in companies. However, while its use offers many benefits, the reality is that it also involves risks.
Live better through technology
In a “smart home”, Internet-connected devices and services, such as lighting and heating, communicate with each other and with the owner and track important data. For example, WiFi lighting can be controlled via smartphone apps, while smart thermostats can help users control and reduce their energy consumption. The intelligent buildings offer similar benefits to property managers, including simpler monitoring security cameras, the ability to unlock doors tenants and powerful data that can be used to generate cost savings.
These technologies offer convenience, efficiency and a perception of higher quality of life, and are therefore in high demand, especially among younger renters. In the United States, for example, 44% of millennials would be willing to give up parking spaces to live in smart apartments, and six out of seven would pay more to rent smart homes, according to data from lock maker Schlage and Wakefield Research.
But meeting tenant demands must be balanced against potential security risks. Smart technologies could make multi-family properties prime targets for cyber attackers. Through connected devices, WiFi networks, cloud systems, and mobile devices, attackers can break into important systems, such as security, lighting, and HVAC systems, or steal personal and financial information from tenants. These events could result in liability or loss of income for owners and operators.
Manage the risk of cyber attacks
To accomplish these and other cyber related risks, multifamily owners have to develop an all-inclusive risk management plan. Contemplate counting the following steps in this plan:
Evaluate and analyze your risk. Measure the maturity of your cybersecurity program and threat environment, and generate an inventory of your cyber risks, including first-party and liability exposures. Then evaluate the predictable frequency and harshness of cyber losses making use of obtainable modelling and assessment devices or scenario-based analyzes, and prioritize avoidance, mitigation, and transfer risks.
Secure. Generate an inventory of Internet of Things (IoT) devices and ensure proper device configuration, including changing default passwords, frequent file backups, ensuring software is kept up-to-date, and the implementation of patches in a timely manner. You should also educate employees on potential cybersecurity threats and best practices and review your insurance coverage, including cybersecurity, property and casualty policies. Also consider conducting a coverage gap analysis for priority risks.
Respond and recover. Create and periodically evaluate business continuity, disaster recovery, and response plans, and identify and retain third-party vendors, including forensic, legal, public relations, and notification.
By developing a robust plan, you can ensure that you balance tenant needs with your cyber resilience needs. That’s especially important as multi-family properties are increasingly using smart technologies to stay competitive and minimize potential losses.