How to Manage Your Company’s Cyber Risk?
Cyber risk is one of the most serious threats to almost all businesses in year 2016.
Emails and instant messaging apps such as Whatsapp have become the default mode in communication on a daily basis. Mobile phones have also evolved to a multi-functional device that allows you to perform various business transactions.
So, it is not surprising that businesses in Singapore named cyber risk the one of the top business risks.
However, despite this awareness, 8 in 10 Singapore firms believe that their cyber security structure is not adequate.
This article will show you:
What is cyber risks, and why you should care?
How can you manage your cyber risk?
What is Cyber Risk?
According to the Institute of Risk Management,
Cyber risk means any risk of financial loss, disruption or damage to the reputation of an organisation from some sort of failure of its information technology systems.
So what can happen when there is a failure in your information technology systems?
Here are the possible scenarios:
Not able to process transactions
If your business relies on your IT systems to process transactions, then you will not be able to do anything when the system is down. This may mean lost business. You might even suffer a bad reputation, which will impact your future business.
Unauthorised access to your information system
When there is an unauthorised access to your information system, you might compromise your customer’s or employee’s data or even your own data. These data can include sensitive information which you are held in confidence. With these data, hackers can extort from you or your clients for money.
Examples of Cyber Attacks
Ashley Madison is an online dating service targeted at people who are married to have affairs. One of the main selling points of the company is that the users’ identity are confidential.
In July 2015, the company was a victim of a cyber attack where hackers stole all of its customer data – including names, addresses and credit card information.
It is not surprising that there is an outrage among its customers. This breach of information might cause problems in their relationships.
In 2014, Home Depot discovered thatthey have compromised 56 million credit cards information and 53 million email addresses. In the end, Home Depot suffered damages of at least US$19.5 million to its customers.
How Can You Manage Your Cyber Risk?
Create awareness in your company
The first thing you have to do is to create awareness of cyber risk in your company. The responsibility of ensuring security in your IT systems should not just be on your IT team. IT security is only as strong as its weakest link. And this weakest link can be your employees.
The awareness of cyber risk should include:
Common malicious attacks such as phishing of emails, trojans, and viruses
Encourage or enforce regularly changing passwords
Do not request data that you do not need for your business
Do not install “free” software that might consider viruses
Cyber risk is more than an IT issue. It also includes compromises made by your employees.
Purchase Cyber Risk Insurance
Cyber risk insurance can help to defray part of the costs when your IT systems have been compromised. Most cyber risk insurance covers the following risk:
Personal or Corporate Data liability
Data Security Liability
Regulatory penalties and fines
Public Relations, Crisis Management, Forensics and Security Specialist Services
Cyber risk insurance can be customized to your needs.
Eliminate Unnecessary Data
One way to minimize the impact of a cyber attack is to remove data that is no longer needed for the business. If the data is important but is not needed for the time being, considering storing it in a separate server.
All businesses suffer some form of cyber risks. This article covers the basics on how you can manage cyber risks for your business. If you want to learn more about cyber risk insurance, and how it can help you, please contact us.
Or call us at +65 6298-6222.