Cyber insurance turns-out from unknown to mandatory in few month
The 3 major reasons to consider a cyber insurance in 2016 include:
- First, an efficient way to transfer the financial impact of the cyber residual risk to a 3rd party
- Second, regulators are now starting requesting it for most of the businesses
- Third because it is the easiest way to transfer external risk link from one 3rd party to another 3rd party
Even if the financial liability is covered by a cyber policy, the responsibilities remains owned by the organization. Regulators and US courts are now seeking to assess the companies effort to prevent any breaches. The cyber capabilities developed by the company to protect the confidential data are analyzed as well as the root cause of the breach. Therefor the companies responsibilities is engaged.
Ownership of cyber resilience is not a geeky lingo anymore since it became a serious concern for the seniors management.
Cyber insurance will require to review the cyber exposure by going beyond the data owned but also the data manipulated, potentially being exposed under… our responsibilities.
Who ask what kept us awake at night ?
Think encore !