According to a recent cyber survey carried out by the Association of Insurance and Risk Managers in Industry and Commerce (AIRMIC), firms are looking more carefully at the range of cyber risks they face due to the increasing cyber crime and the worrying headlines that have led most company boards, to acknowledge it is not just an IT but a business issue.
The call for safety measures have sparked the insurance industry to develop products in response to these heightened threats and cyber insurance is becoming more cost effective, thanks to the growing choice of insurers entering the cyber market.
This evolving risk is escalated by the increasing reliance upon mobile devices, social media and increased use of remote outsourced cloud based services, that many firms now cannot function without.
With these issues in mind, Pitmans hosted their second annual Cyber seminar, with various industry professionals on hand to discuss ways to detect, manage and provide it’s audience with a toolkit to arm themselves against those risks.
As guest speakers at the seminar, Griffiths & Armour asked the audience three key questions: 1. Is Cyber risk on your board agenda? 2. Has the organisation quantified the potential loss to the business Cyber risks could causes? 3. Is there a cyber risk strategy in place?
Phil James of Pitmans also stated; “as partners, directors board members and management, responsibility falls on your shoulders to understand these risks and the clarity the roles and responsibilities of those within the organisations. Act now. This is not a dress rehearsal.”
The Finance Directors and Risk Managers who made up the audience were reassured to hear from Griffiths & Armour, that there is a practical way forward, using the combined skillsets of the risk, legal and technology specialists, working in tandem, to audit and prioritise the cyber exposures and truly understand the nature of the risk to their business.
Growing limits and the increasing array of insurers means that there are insurance products out there to tackle and meet the specific requirements of firms of all sizes. Whilst the National Audit Office has raised concerns of a lack of 'cyber crime fighters', Risk Managers working closely with their risk advisers can quickly draw together the many cyber risk stakeholders of an organisation to help identify and quantify the full extent of the total cost of cyber risk to the organisation.
Other concerns relating to safeguarding an organisation, follows the recent fines against the NHS Trusts for loss of patient data and one of the most common questions that has arisen within organisations, is whether fines are insurable? According to CFC, who currently underwrite more than 1,000 cyber policies; “any fines, penalties or contractual damages, you are legally obliged to pay as a direct result of a breach of privacy obligations where insurable under the applicable law;” Whilst this has not been tested many of the insurers offering cyber insurance have said their intention is to provide such cover to the extent that it is legally permissible.
If you have any questions or queries relating to your cyber exposures, please contact
Troy Johnson on 0161 817 4458 or email email@example.com