Cyber risk refers to any risk of financial loss, disruption or damage to the reputation of an organization resulting from the failure of its information technology systems. This could materialize in a variety of ways:
· Deliberate and unauthorized breaches of security to gain access to information systems
· Unintentional or accidental breaches of security
· Operational IT risks due to poor systems integrity or other factors.
How cyber risk affects your business
Whether you’re a small business or a multi-million dollar corporation, you’re not immune to cyber risks.
All businesses face the risk of a cyber breach at some point during their life cycle, but understanding the threat and its severity can go a long way to helping control for its consequences.
Below we’ve outlined a couple of ways you can become a victim of a cyber-attack:
· Cyber criminals are increasingly walking amongst us as company employees
· Employees are the weakest link due to phishing and social engineering
· Cyber criminals target organizations with computing resources that they can rent out
· Hackers are using email notifications to send payments to criminals
· Blended attacks (using any and all opportunities) are becoming common practice
· Extortion, where data is held ransom, is a common cyber-criminal activity
Here are ways you can try to control for cyber-attacks:
· Provide security awareness training to all employees
· Segment networks to ensure only authorized employees are able to access appropriate data sets
· Keep all software up to date to ensure criminals have fewer weaknesses to exploit
· Establish good data governance policies and processes
With the right education and controls in place, your company can respond to the risks.
TAKEN FROM: www.nbins.com/blog/cyber-risk/what-is-cyber-risk/
Could this happen to your business
Could your business be hacked?
Hackers are alive and well and get a thrill out of making business owners sweat. Cyber Liability Insurance can reduce your risks and help you rest easy knowing your business is covered from even the craftiest of criminals.
Here are some claims examples:
A Travel Agency experienced three separate data breaches where hackers accessed over 250,000 customers’ credit card information and passport details. Nearly $2m was paid by the insurer for forensic and legal costs.
The link effect:
An online retailer’s website was defaced and included a link to a competing retailer’s website when hackers gained access to personal information and took control of their website. $800K was paid out for the loss of income, cost to repair the website and defence costs.
A sports drug testing consultant accidentally left his laptop at a sports ground. The results of his tests were time sensitive and as a result of the lost laptop he breached his contract. $70k was paid out for Business Interruption, notification costs for potential medical & PII breach and defence costs. He was able to claim $70,000 for business interruption, notification costs and defence costs for the breach of privacy
TAKEN FROM: http://www.bizcover.com.au/cyber-liability-insurance/
Cyber Liability Insurance
Hackers. These are not just dodgy movie characters but real life people, doing real damage to businesses across the globe, including Australia. If you’re thinking your small business down under is of no interest to these criminals, think again. Every business with an online presence is at risk of a cyber attack and with cyber crime claiming 1,000,000 victims per day, it might be time to bite the bullet and get the right cover for your business.
Cyber Liability Insurance covers your business against the expense and legal costs associated with data breaches, which may occur after being hacked or from the theft or from loss of client information (you could even be covered for a data breach when leaving a laptop in a taxi). Expenses include the cost of business interruption, forensic investigation and data recovery, extortion (a fancy word for virtual hostage!) and crisis management costs to salvage your business reputation after a data breach from a cyber attack. The policy also covers the financially crippling costs of defending yourself, mandatory notification costs and other legal costs.
In a nutshell, your customer data is sacred. If you don’t protect it properly, your business may be fed to the wolves.
If you’re still not convinced your business may be at risk, here are the cold hard facts about doing business in today’s technically advanced world:
· Cyber crime costs Australian businesses $4.5 billion annually – yet it remains one of the least insured policy areas.
· ‘Unisys Security Index – Australia, 2011’ revealed that 85% of Australians would stop dealing with an organisation if their data was breached.
· The average cost of a data breach in Australia, from Symantec’s 2011 Cost of Data Breach Study, is $2.16 million.
· No business is safe and in November last year, computer hackers from a Romanian syndicate allegedly accessed the IT systems of 100 small Australian retail outlets and stole credit card details of over 500,000 customers.
What’s the Solution?
Tell me what’s included?
• Business interruption costs
• Investigation and data recovery costs
• Fines and penalties
• Extortion costs
• PR and crisis management costs
What is typically not covered?
• Replacement equipment
• Property Damage
• Prior known facts/instances
• Intentional Acts
Get the Cyber cover
That is right for your business
Policies available through BizCover you can choose between $50k to $2m
Sit back for a minute and think about this….it might be the first time you have considered the impact on your business if your website was taken offline? Or could your business survive losing face in the community, and the associated losses, of your customer’s personal details being stolen? Each business will require a different amount of cover and this depends on:
· The type of risks to your business and quantifying costs to cover those breaches
· The cover you already have in place
· Cover your suppliers, like cloud data storage suppliers, have in place
Who benefits from this type of insurance:
· Any business that deals with customer data
· Retailers who use EFTPOS machines
· Companies reliant on IT systems to conduct business.
· Example occupations: Doctors, Lawyers, Accountants, Consultants, Estate Agents, Insurance Brokers etc