Cyber Risk and Cyber Insurance seem to be playing a key trend in the risk world, especially at the RIMS conference and the US in general.
With increasing news spreads about data breaches, social media hacks (to the extent which have made share prices take tumbles and triumphs) why is it that the level of let’s say ‘awareness/stress’ in Europe is not high on our risk agenda as it is in the rest of the world (USA)?
So why Cyber Risk and Insurance?
- Technology is enabling the need for cyber security
- Data security/Breeches are increasing
- Network security has become an increasingly vital need
Trends for Europe…
The European parliament and council adopted a regulation at the end of last year 2012 which addressed the need for the growing cyber risks especially to aid companies with understanding the loss of personal data integrity and really hammer down into the long term risks of not doing so.
Despite the fact that now we are somewhat nearing the final legalized approval of the regulations, a lot of business and organizations in Europe may not be taking a more pro-active approach in investing in the right measures to protect themselves of this increasing threat.
What to do now?
It really is the way of the world when something needs to be changed; something catastrophic needs to happen in order for necessary measures and controls to take place.
Come 2014/2015, Insurers will probably expect a signification interest in cyber risk products as a result of the regulation; however it is essential that businesses really take a proactive approach in ensuring they are covered now and not when it’s too late.
Let us practice the real essence of risk management, being proactive, not reactive.