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Cyber Risks Extend Beyond Data and Privacy Exporures


Although data privacy issues may be top of mind for many organizations in managing cyber risks, they may be overlooking a potentially more severe threat: the impact of technology failures on supply chains and general operations. Technology outages and software failures resulting in supply chain and operational disruptions can cause significant loss of income, increase operating expenses, and damage an organization’s reputation.

According to Cyber Risks Extend Beyond Data and Privacy Exposures:

  • Unplanned information technology (IT) or telecom outages are the most debilitating source of supply chain disruption, outpacing adverse weather, earthquakes, product contamination, and transportation disruptions.
  • Although cyber insurance policies have historically been triggered primarily by data breaches and hacking attacks, many now provide coverage for a broad range of technology failures and outages.
  • The purchase of cyber insurance should be just one part of a well-planned and effective risk management program that also includes policies and protocols to prevent and mitigate technology risks.