Cyber resilience for the 21st century

The news is increasingly dominated by stories of cyber attacks on large organisations. Recent examples serve as a blunt reminder of the substantial financial and reputational impacts that such events can cause.

New technologies and increased digitalisation provide clear advantages in our daily lives. For businesses, the likes of cloud computing and 'bring your own device' initiatives will continue to increase the interconnectedness of organisations.

As a result, society's vulnerability to cyber attacks is undeniably on the rise. For the insurance sector, they can lead to IT interruptions, data breaches and compromised data, damaging reputations and causing severe financial losses.

New publication examines role of insurance

More frequent, more high profile and more sophisticated cyber attacks prove that guaranteed cyber risk protection is impossible. Instead, the focus must be on cyber resilience, including practices for detecting security incidents and ongoing improvement, as well as the more traditional information security practices which concentrate on preparation and protection.

These issues are explored in the CRO Forum's new publication, Cyber resilience – the cyber risk challenge and the role of insurance (download box at right). The report, produced by a CRO Forum group chaired by Swiss Re, offers practical steps on how organisations can enhance existing cyber risk management frameworks and the role that insurance can play.

Insuring cyber in the digital age

Observing the damage that can be caused by cyber attacks, many organisations are looking to the role that insurance can play as part of a strategy to manage cyber risk. This trend is accelerated by regulatory developments and heightened awareness of the impacts of cyber attacks as a result of news headlines. Insurance solutions can improve society's overall resilience to cyber risks by reflecting cyber risk profiles in the cost of insurance.

"Insurance and reinsurance can complement a suite of risk management practices to boost cyber risk resilience," says Swiss Re Group CRO Patrick Raaflaub.

"However, a common codification of cyber risk, an improved understanding of cyber risk exposure accumulation and sound risk management is needed to promote a well-functioning insurance market for cyber. The report establishes some practical solutions in this regard and emphasises the importance of cross-functional collaboration and communication."

Learn more about cyber resilience and the role of insurance. Download Cyber resilience – the cyber risk challenge and the role of insurance.

Published 12 January 2015

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