Cyber Risk Insurance
Organizations frequently find difficulty in keeping up with the myriad of cyber security threats in today’s world. Organizations sought to address risk without setting up costly mitigation efforts. To this end, cyber risk insurance was created to compensate organizations in the event of a cyber attack.
Cyber risk insurance is a means of transferring risk, which means that the burden of risk is placed on an external party, namely the insurance company.
This type of insurance can provide compensation for an organization in the event of a hacking attempt
Many types of attacks can be covered with cyber risk insurance, including: ransomware, DDoS, data breaches, including loss of customer data.
Cyber risk insurance can also cover an organization from regulatory breaches, like privacy law breaches.
Cyber Risk Insurance is used when the costs of implementing cyber security measures are too great for the organization.
Instead the organization decides to transfer the risk to the insurance company.
Organizations might wish to purchase cyber risk insurance to transfer the risks associated with storing data in a cloud environment.
A Key Risk Indicator (KRI) is a metric used to quantify risks. It is usually an event or statistic that is correlated with another risk.
KRIs allow an organization to detect potential risk before a failure occurs. An example might be the number of instances where systems exceeded capacity requirements.
If systems are regularly being overloaded, it may be time incorporate a server cluster or add additional resources to the system
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