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RESEARCH AND BRIEFINGS

Directors in the Firing Line: Responding to Cyber Threats

 


It is hard to identify any company that is immune to cyber crime in today’s interconnected digital world. First lines of technological defence are no longer impenetrable and directors are now being held directly accountable when the businesses they govern experience a cyber security event.

Data breaches affect millions of records a year: data or network sabotage, virus and Trojan infection, computer fraud and laptop theft, incidents of denial of service and network scanning are ever increasing and it is unlikely the underlying trends will improve. According to the 2014 report from a research center dedicated to privacy, data protection and information security policy, the Ponemon Institute, 2014 Cost of Data Breach Study: Global Analysis, the mean annualised cost of cyber crimes for 257 benchmarked organisations was US$7.6 million per year, with the cost ranging from US$500,000 to US$61 million per company each year. As such, insurance coverage for cyber risks should be a significant and growing concern for companies.

Read more about directors and officers' risks in this field in our latest report.

"Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by Jardine Lloyd Thompson Pty Ltd (ABN 69 009 098 864, AFSL 226 827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.

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