What the heck is the cyber risk guarantee?

Cyber ​​risk insurance is a combination of two concepts rather than one product.

Almost everyone would agree that businesses and other organizations face cyber risks. You can’t read a newspaper or magazine, watch a national newscast, or listen to the radio without getting information about the latest computer security breach. The problem is global and is expanding.

The losses, which now exceed the world’s illicit drug trade, can be catastrophic for organizations experiencing a security incident. Database hackers, for example, can steal personally identifiable information (PII) from customers and make it available to criminal gangs and identity thieves. They, in turn, can sell the confidential information on the streets. Criminals can open debit accounts, make illicit purchases, gain access to private bank records, or possibly do something worse. The target business may face liability lawsuits, loss of business, damaged reputation, and in some cases, government fines.

The bad news keeps coming. Information security breaches are becoming more sophisticated and numerous. The police cannot help and are far behind the curve. Malicious cybercriminals risk very little by carrying out their illegal activities. They can reap great rewards.

Prepare yourself, however, because things are going to get worse. The number of Internet addresses that can be assigned has expanded dramatically. The original Internet addressing scheme (IPV4) provided approximately 4,200,000,000 (or 4.2 billion unique endpoints). The newer fabric (IPV6) will provide one trillion, one trillion addresses or (340,282,366,920,938,000,000,000,000,000,000,000,000).

There are many Internet addresses!

Computing devices and other digital signal processors, all with Internet access, can be attached to virtually anything, such as appliances or machines, in the factory. Every address is subject to malicious cracking. The rush to do so has begun. That reality means a real problem.

What can an organization do?

A company or other organization should adopt cyber risk assurance as a business process. Doing so would provide immediate protection against potential loss and damage due to a cyber attack on an organization’s information infrastructure (registries, networks, and costs associated with the aftermath of a computer security breach).

Adopting cyber risk assurance practices merges two important concepts. The first involves implementing what is known as “security best practices” across the enterprise. Typically, experts explain this dimension as “providing regular IT security training” for everyone in the company. The second aspect of cyber risk insurance involves the company transferring potential financial losses to a relatively new product called “cyber risk insurance.”

Combining industry standard security best practices with a custom designed cyber risk insurance policy can provide a business with the best possible scenario in the face of growing cyber threats.

Experts know that perfect information security is impossible. But a business or other organization can improve the chances of preventing a successful attack by following a systematic process designed to block intrusion attempts. Cyber ​​risk insurance can help offset any financial losses that may “exceed” your organization’s security plan.

Are you prepared for the consequences of a successful cyber attack? Could you prove to the courts that you performed due diligence and that you were not negligent? If you can’t answer yes to both questions, you’re at risk.