Cyber risks – what’s all the fuss about?

May 5, 2015

A good number of us struggle to get our computers to do what we want them to do let alone worry about someone else, maybe with more sinister intent, attempting to do the same. Welcome to the world of cyber risks.

When another hacking horror story hits the press we heave a sigh of relief that it wasn’t us, make a mental note to talk to the IT people and then forget all about it. It’s this last bit that poses the biggest threat to our businesses even though the scenario we imagined in our reverie was pretty scary.

No, it isn’t simply a case of beefing up the anti-virus software or buying insurance – the biggest risk is acknowledged as “people”, and insurance won’t prevent someone causing the problem in the first place. The risk has to be identified and assessed before anything can be done about it but simple protective steps relating to system access, password protection and financial data can be quickly introduced.

It’s not just about the obvious risks such as financial loss or system disruption but also – an increasingly important consideration in our social media driven world – reputational damage.

The Government are on the case with their “10 steps to Cyber Safety” and “Cyber Essentials Scheme” – which aims to provide a certificated system assessment to run parallel with the already accepted ISO27001 best practice for Information Security.

The insurance market is small and still finding its feet. Policies will consider own risks and those you pose to third parties but, as can be expected, plenty of small print. This is gold rush time for those brokers with an eye for a sale so present yours with your own risk scenarios before you buy to make sure they are covered.

The Insurance Manager has completed a review of the main policies available, compared covers and small print and considered how common claim scenarios would play out. Our report is primarily for the benefit of our clients but will be available free to interested parties towards the end of May. Drop us an email if you would like a copy of our guide.  

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