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CYBER RISK INSURANCE OVERVIEW
No computer network is safe from a cyber-attack, as hackers can target any network to access confidential data and generate much more serious damage. Fraudulent transactions, identity theft, defamation and extortion are all problems caused by cyber risks. How many times have we heard about the disclosure of confidential information or the publication of personal data on social media, thus violating the privacy of others.
In view of such risks and the impacts they can have on structures, it is becoming urgent to provide cyber risk insurance to cover the costs of restoring data among other related costs.
The importance of cyber risk insurance
All it takes is for a company to be the victim of a computer intrusion to endanger its security and shake the trust of its customers. Generally, entrepreneurs are not sufficiently aware of such a danger and think that the steps taken by IT technicians are sufficient to prevent all attacks, but this is only a decoy. They mistakenly think that the protection against theft and criminal activity is sufficient to adequately cover them against cyber risks. Unfortunately, this is a mistake that can cost a company dearly and involve its responsibility for the costs related to this computer intrusion. Many costs can be borne by the structure, such as legal fees, fines and penalties, crisis management expenses, compensation to be paid to third parties, among others. Why pay so many costs? Request a quote from a specialized insurance broker now.
All the advantages of cyber risk insurance
There are many benefits associated with this protection, which provides coverage for the parties directly involved, including compensation for privacy breaches, as well as legal expenses and crisis management costs incurred by PRs, as well as compensation for loss of loyalty and income associated with the interruption or disruption of business operations.
This cyber risk insurance also covers third parties, particularly with regard to losses suffered by customers. And generally the risks covered are network security, privacy, cyber extortion, expenses for restoring lost data and the interruption of business activities.
In recent years, technology has become an integral part of our daily lives, both personally and professionally. Information is exchanged or stored, personal or business data, transactions, etc. All this information can arouse the greed of cybercriminals. Hence the need to effectively protect your company with sufficient guarantees.
The statistics are very revealing about the scourge of cybercrime which affected 36% of Canadian structures not once but several times in the same year. The intrusions have had a significant impact on the networks and computer systems of these companies.
What is a cyber risk?
Cyber risk is when there is a danger of financial loss or cessation of professional activity or damage to a company’s reputation and brand image following a computer problem. Such hazards can come in different forms, including:
- intentional unauthorized invasion of a computer device for the purpose of extracting secure information to be exploited in cases of espionage, extortion or any other criminal purpose.
- the accidental intrusion of a secure system, which generates significant security risks and which must be well managed.
- IT operational risks due to poor integrity of equipment and systems.
It should not be forgotten that globalization is a significant factor given that companies are linked to their suppliers and customers all over the world, which increases the risk of exposing structures to cyber-attacks.
The consequences of cyber risks on a structure
Small and large companies alike, they are all exposed to the risks of cyber-attacks. Yes, no one is immune! And as a result, they can be confronted with this type of problem at any time. Once you are aware of the seriousness of the problem and its consequences, it is time to take the necessary initiatives and steps to protect yourself and reduce the impact.
It is very easy to become a target of cyber-attacks for many reasons, including:
- cybercriminals can be company internals;
- the structures most targeted are those whose computer capacity can be rented or exploited;
- Notices of criminal resolution are exchanged by email;
- the combination of several techniques to launch a cyber-attack;
- the use of extortion to extract money from companies by holding confidential information as a hostage.
How to avoid cyber-attacks?
All necessary precautions should be taken to avoid cyber risks, starting with training and raising awareness about IT security among staff. We also need to segment networks so that only authorized people can access certain information and files.
It is important to think about regularly updating the various software programs to prevent intrusions by cybercriminals who exploit the slightest weakness in the system to break in. Finally, it is recommended to guarantee good data governance with well-secured devices.
Such initiatives help prevent the risk of cybercrime and better protect your data and documents.
