FINPRO Leader, Singapore
Cyber risk is no longer a technology problem – it has become a constantly evolving systemic risk for organizations and societies that must be actively managed. With dramatic increases in remote work, supply chain interconnectivity, digitization pressures, and critical infrastructure vulnerabilities, organizations are more exposed than ever. To thrive, they must move beyond protection to resilience.
Cyber threats impact every industry. Every business — large and small — is now managing cyber risk. There’s no one-size-fits-all answer either: with new digital transformation technologies comes an increased attack surface for cybercriminals to penetrate.
Many organizations look at cybersecurity as an operational or technology problem and are spending more every year on cybersecurity solutions. Yet the scale, frequency, and economic impact of cyber events – whether ransomware, supply chain attacks, or business interruptions – continues to grow.
For more than 25 years, Marsh’s Cyber Practice has been a global leader and trusted risk advisor, building and delivering best-in-class capabilities and solutions to help our clients understand, measure, and manage their cyber risk. We enable better strategic decision-making around your cyber risk through our advisory services and technologies for insurance, incident management, risk intelligence, and resilience optimization.
Cyber insurance can help an organization recover losses and associated costs resulting from large-scale breaches, business interruption, ransomware, and other types of cyberattacks.
Comprehensive cyber insurance coverage can provide you with resources and reimbursement for items such as legal fees, incident preparation and response support, employee training, forensics services, and breach notification services. Such insurance policies can also offer you balance sheet protection for first- and third-party costs and liabilities such as lost revenue and extra expenses, regulatory fines and penalties, data and hardware restoration and repair, and reputational harm.
Any company or public sector entity that uses technology or data faces cyber risk. The list of cyber risks challenging organizations today is expanding exponentially. Ransomware, for instance, is increasing in frequency, severity, and sophistication. But it’s just one of many cyber risks to be understood, measured, and managed.
With cyber insurance, you can create a tailored coverage program that transfers risk out of your organization, as well as reduces balance sheet impact and volatility resulting from cyberattacks.
Having a comprehensive cyber risk insurance program in place, complemented by a risk management program, has never been more important to help your organization appropriately manage its risk.
The cyberattacks dominating the headlines today are largely insurable. In those cases where companies bought insurance, coverage responded and claims were paid.
While terms and conditions can vary, a cyber insurance policy can include comprehensive coverage in advance of, during, and after a ransomware attack. It may cover, but is not limited to, incident response planning, breach notification services, and restoration and repair.
When it comes to cyber risk, businesses responding to a recent survey indicated they are most concerned about ransomware, regulatory risk, and supply chain risk. But only 18% of respondents indicated that they are highly prepared for cyber risk (Marsh Risk Resilience Report 2021).
Here’s what you should understand about these trends in relation to your own risk management.
Any organization that uses technology or data has a cyber risk exposure. The list of cyber risks is endless, and disruptions to your business can have an enormous impact on your operations and the bottom line. But cyber, like any business risk, can be understood, measured, and managed.
When it comes to managing cyber risk and threat exposures, companies typically gravitate toward technology solutions, including security hardware and software, cyber consulting and penetration testing services, and cyber risk scorecards. However, despite spending millions, most organizations lack a true view of organizational cyber risk and its potential economic and operational impact on their business.
Our clients look to us for our unique ability to help them better manage cyber risk throughout their organization and improve their resilience. We can help you quantify your cyber risk exposures with scenario-based loss modeling, benchmark potential cyber event losses and costs, consider the effectiveness of cybersecurity controls from a financial perspective, and assess the economic efficiency of multiple cyber insurance program structures.
FINPRO Leader, Singapore