Cyber Insurance and Risk Management
In its most basic form, risk management involves three key steps:
- Risk Identification
- Risk Assessment
- Risk Mitigation
In order to identify and assess cyber risk, you must take a 360-degree view of your organization. According to the National Institute of Standards and Technology (NIST), the goal of a cyber risk assessment is to understand “the cybersecurity risk to organizational operations (including mission, functions, image, or reputation), organizational assets, and individuals.” Further, given the escalation of third-party business risk, organizations need to closely evaluate risks presented by outside vendors and business partners as well.
Cyber risk mitigation involves taking proactive steps to protect against and reduce the adverse effects of the key risks to your organization. Implementing network security defenses, incident response plans, and employee training are all essential elements of cyber risk mitigation.
Unfortunately, this is not enough. The reality is, no company is immune from a cyber-attack, regardless of the strength of their defenses. This is where insurance can help. Comprehensive stand-alone cyber insurance will help protect the organization’s balance sheet by transferring some of the costs associated with the inevitable breach.
Cyber insurance complements and supports active security measures by providing third-party regulatory and liability coverage as well as a host of first-party response, remediation and recovery insurance. In addition, most cyber markets also provide free or discounted pre-loss services to assist an organization in breach preparedness.
Cyber insurance can be instrumental in helping organizations conduct this kind of assessment.
|Third Party Coverages||First Party Coverages|
|Network Security Liability||Breach Response Costs|
|Privacy Liability||Cyber Extortion/Ransomware|
|Regulatory Defense/Fines & Penalties||Direct and Dependent Business Interruption|
|Payment Card Industry (PCI-DSS)||Digital Asset Protection|
|Media Liability||Systems Failure|
|Cyber Crime Coverages|
October is National Cybersecurity Awareness Month (NCSAM), a collaborative effort between government and industry to raise awareness about the importance of cybersecurity. Join us in sharing this year’s message to Own IT. Secure IT. Protect IT.
If you have any questions about our cybersecurity insurance program or want to learn more about what we offer, let’s connect.
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