Cyber crime is booming. And most businesses don’t have the protection they need for the time when their systems are breached. This protection comes in two basic forms: the firewalls and other technology needed to keep hackers out and insurance coverage for what happens after they make their way in.
A new report by the Zurich Insurance Group and Atlantic Council highlights seven different aggregations of cyber risk.
1. Internal IT: The cumulative of an organization’s IT. Examples: Hardware, software, servers, related people and processes.
2. Counterparties and partners: Dependence on or direct interconnection with an outside organization. Examples: Research partnerships, relationships between competing or cooperating banks, industry associations and join ventures.
3. Outsourced and contract: External suppliers of services, including HR, IT and legal. Examples: IT and cloud providers, HR, legal and accounting consultancy, contract manufacturing.
4. Supply chain. Examples: Exposure to a single country, counterfeit or tampered products, risks of disrupted supply chain.
5. Disruptive technologies: Unseen effects of disruptions either to or from new technologies. Examples: Internet of Things, smart grid, the largely automatic digital economy.
6. Upstream infrastructure: Electricity, financial and telecommunications systems. Examples: Internet exchange points, submarine cables, key companies and protocols used to run the Internet.
7. External shocks: Outside of the control of most organizations and likely to cascade. Examples: Major international conflicts, malware pandemic.
For more information about how cyber risk insurance can help your business, call Joanne Billington at 236-4311.
