errors and omissions insurance Can Cyber Security Experts in the Boardroom Help Stem Attacks? | Axis Error & Omission
Error Omissions
Error Omissions
Submit your information below so we can contact you with a FREE quote
[All fields are required.]
Actual Annual Revenue:
Verify:
=
I have read and agreed to theTerms & Conditions
Error Omissions
Error Omissions

Can Cyber Security Experts in the Boardroom Help Stem Attacks?


Can Cyber Security Experts in the Boardroom Help Stem AttacksThe elevation of cyber security experts to the boardroom, a position traditionally occupied by former CEOs and specialists in marketing and finance, is becoming a fast-expanding trend around the country. Typically, these companies are at high risk for cyber attacks and in industries like financial services and healthcare or conduct significant business online. Why? It’s simple: Cyber attacks on large companies skyrocketed 44% last year from 2013. Moreover, cyber crime cost businesses more than $400 billion a year, according to Lloyd’s of London.

If a board doesn’t take appropriate action to address this issue, the consequences can be far-reaching and costly – in money, reputation, legal bills, lost time and lost customers. All you have to do is look at Target as an example. Since the retailer was breached two years ago, Target has spent $256 million straightening out the situation, with cyber insurance expected to cover about a third. The damage, although a small piece of Target’s pie, was enough to get its chief executive fired and scare away many customers for several months. Moreover, government investigations and several lawsuits from affected customers and business partners are ongoing.

Cyber security experts as part of the board can provide the expertise needed to help minimize and perhaps prevent attacks from happening instead of waiting to being called upon after an incident. A cyber security expert board member can help the management team make difficult risk management decisions as well as increase the general level of cyber security knowledge and awareness on the board. He or she can explain the potential dire consequences as result of an attack, including regulatory investigations, loss of intellectual property and financial risk from fraudulent transactions, with the greatest risk being the company’s stature in the eyes of its customers and investors. The expert can also help the board appropriately prioritize cyber security, and ensure cyber security policies and procedures are in place and appropriately funded. He or she can also help compare an organization’s approach to security to their competition.

Despite seeing several boards taking steps to include cyber security experts on their boards, we still have a long way to go for companies to truly understand the exposure they face. Just 11% of public-company boards queried this year reported a high-level understanding of cyber security, according to the National Association of Corporate Directors. Also, a review by the New York Stock Exchange and security firm Veracode found that two-thirds of board members questioned think their companies are ill prepared for a cyber attack. Yet consulting firm PricewaterhouseCoopers reports that 30% of boards surveyed never talk about cyber security at all – something that obviously has to change.

Equally important is securing Cyber Liability insurance to respond in the event of an attack and help address the costs involved. Axis Insurance Services specializes in Cyber insurance and can offer you a policy that addresses your unique exposures. Call our specialists at (877) 787-5258 to discuss the policies we have available, scope of coverage, limits and other important components that go into providing proper insurance.

 

Comments

comments

Blogged on: September 9, 2015 by Mike Smith
Error Omissions
Error Omissions
Submit your information below so we can contact you with a FREE quote
[All fields are required.]
Actual Annual Revenue:
Verify:
=
I have read and agreed to theTerms & Conditions
Error Omissions
Error Omissions