Cyber Risk – Are you covered?

How do leaders and business managers anticipate and contain the diverse, often unknown, emerging cyber risks in the Insurance sector?  Unsurprisingly, cybersecurity is a constant issue, often sitting at the top of many Board agendas. Many recent high profile incidents of hacking and cyber intrusion have brought home the harsh reality of what happens if a business does not get it quite right. With the move toward more diverse and complex infrastructures, progressive forward-thinking Risk Managers are ensuring that all areas are covered and brought into a coherent, commercially viable, risk strategy.

So who are pivotal figures in this process, and what is the responsibility of senior management? In the FCA Business Plan 2017/18, Chairman John Griffith-Jones warned that cyber-resilience was a key risk area for the financial services industry. Broadly speaking, this warning was aimed at Board and ExCo, but more specifically the CEO, CFO, CIO, CTO, CISO, and GC, along with the Board Risk and Audit Committees. Progressive key players are not only promoting a strong CRO mandate, but also increasingly asking the ‘right questions’ ensuring they do not fall foul of their SIMR commitments.

With the above in mind, whilst there is no perfect solution to combat cybercrime and fraud, here are some key questions you should be asking:

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