Risk Diagnostic Series: Cyber Report

risk-diagnostic-series-cyber-250x324May 2015

Advisen released a report that discusses the rapidly evolving cyber threat landscape and how cyberattacks affect businesses of various sizes and across a range of industries. It offers important ideas on crafting a breach response plan and discusses the role of insurance as an essential part of network security risk management strategies. The free, 7-page paper is sponsored by Starr.

Responding to Cyberattacks

2014 was dubbed the year of the retail breach, 2015 is already being referred to as the year of the healthcare breach, and  it will only be a matter of time before cyber criminals’ focus changes yet again. The message is simple: no company is safe from a cyberattack.

Preparation is essential for businesses to effectively respond to evolving cyber risk threats. When a breach occurs, proper steps must be taken in a quick and efficient manner to prevent the situation from becoming a crisis that rapidly spirals out of control. Apart from ensuring that a carefully crafted breach response plan is in place, it is important for companies to understand the role of insurance in cyber risk.

Insurance is increasingly seen as an essential part of network security risk management strategies. Cyber insurance is in fact a package of coverages protecting companies against both first-party and third-party losses arising from a data breach or other defined cyber-related events. Depending on the specific policy, coverage may include security and privacy liability, data breach notification and credit monitoring, forensics and investigations, business interruption, data recovery and repair, regulatory fines and penalties, and extortion threats.

Regardless of the motive, cyber criminal tactics are evolving. Malware is more sophisticated, efficient, and easier for criminals to access. Underground cyber crime marketplaces are flourishing and attacks are not only more frequent, but more ambitious in terms of size and scope.  Over the past 16 months, some of the largest and most recognizable businesses in the United States have fallen victim to cyber attacks including Michaels Stores, Community Health Systems, JP Morgan Chase, Staples, Sony Pictures, Anthem and Primera Blue Cross, among others.