Rising to the cyber threat

Cyber risk is real but it can be managed and to an extent transferred to the insurance market

Rising to the cyber threat
Cyber risk is big news at the moment as individuals, businesses and governments all over the world wake up to the fact that the global economy is now run on a technology that is vulnerable and potentially catastrophically so. 

The number of detected cyber-attacks skyrocketed in 2014, up 48 percent from 2013. The expected number of attacks is expected to surge to 42.8 million or roughly 117 339 attacks each day according to consulting firm PWC. In recent research undertaken by global insurance group  AIG,  86%  of  those  asked  (including  risk managers, brokers and C-suite executives) said they were ‘very’ or ‘somewhat’ concerned about cyber risk.

But while this is a very real and scary risk it can be managed and to an extent transferred to the insurance market.

In the following articles experts in the field explain to Fullcover readers the scale of the risk, how it has recently evolved and where it is likely to head next. Critically the authors also explain how this risk can be identified, measured, managed and ultimately transferred to a fast-developing cyber risk insurance market.

For companies, this risk needs to be managed on an enterprise wide basis. This cannot be managed in isolation by the IT department, legal or risk and insurance. This needs a structured, planned and group effort to ensure that the benefits of the technological age outweigh the risks.

A recipe for cyber defense, by Scott Corzine, Managing Director and Co-Leader of the Risk Management Practice at  FTI Consulting

Cyber attack methods and business impact, by Ernest Legrand, CEO WEBCBG

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