CYBER RISK MANAGEMENT

Intricate supply chains, remote working environments and even political tensions; our reliance on digital technologies is also creating a vulnerability to cyber risks. In fact, figures show that data breaches are on the rise within Australia for many organisations, with health and financial services organisations identified as some of the worst hit industries¹. 

From corporate agendas, defence capabilities, confidential client information, inventory management, health records or even more recently, valuable government intellectual property, sensitive data has long been an attractive source of material, contributing to this rising prevalence of cyber risk exposures. At first glance, it may be easy to assume that cyber threats are simply an issue for IT personnel, however, entire organisations across a variety industries have an important role to play in the mitigation of cyber risk.

For many organisations, cyber security presents itself as an overwhelming and substantial challenge. Fortunately, as a leader in combatting cyber risks since their emergence, Marsh’s highly experienced team of cyber risk specialists work with a diverse range of clients, offering comprehensive risk management solutions that help to diminish current cyber exposures and prevent emerging cyber security threats. 

Ultimately, no organisation is safe from cyber threats and their impacts can be costly. Don’t let your organisation be confined by the threat of cyber exposures. Take advantage of the opportunities available in our connected world by talking to Marsh’s cyber risk experts for a customised solution today.

Who has Cyber Risk?

No business is immune to cyber risk. Cyber Crime costs the Australian economy up to $1 billion annually in direct costs^2.

Cyber Risk Management Solutions 

Cyber risk can be effectively managed through a program of continuous improvement and vigilance that combines technology with risk transfer. Cyber risks are not technical problems that firewalls and patches can solve alone. Our cyber risk specialists work with clients to analyse their current state of cyber resilience and stage of maturity to deliver risk solutions to help clients protect themselves and to help them enable confident risk management. Through our 3- step solution, we empower organisations with analytics, insights and insurance solutions so they can effectively understand, measure and manage their cyber risks. 

Cyber Insurance 

Cyber insurance is an essential tool for organisations, not only to mitigate cyber risk exposures but also to help organisations recover should they experience a cyber breach.

Cyber insurance typically provides the following key first party and third party coverages:

First Party

• Direct access to incident response specialists in the event of an actual or suspected cyber breach
• Coverage for loss of profit due to business interruption that results from network or system downtime
• Coverage for costs incurred in rectifying computer system damage and recovering lost data
• Notification and monitoring costs for impacted customers
• Insurable fines and penalties resulting from a regulatory investigation
• Coverage for payment card industry (PCI) data security standards assessments

Third Party

• Compensation and defence costs which arise from claims brought by impacted customers or employees for breach of confidentiality obligations
• Third party privacy and breach management costs, including notification expenses, credit monitoring costs and call centre services

Whilst the above reflects typical coverage available in the insurance market, it is also important to understand that the cyber insurance market continues to evolve, by developing protection for gaps created by other lines of insurance. Marsh also works closely with insurers to ensure that cyber policies are tailored to the unique needs and requirements of each business.

What value does Cyber Insurance have for my business?

One of the most valuable features of cyber insurance is the direct and immediate access an insured has to specialist vendors, who can provide important assistance in managing and containing a cyber event. Often this knowledge does not exist within an insured’s business and the ability to access these specialists can lead to things like protection of a company’s reputation, or isolation and removal of malicious code before it causes widespread damage. For high-severity cyber events where the financial impact is significant, cyber insurance is a cost-efficient, risk transfer tool that can help companies mitigate cyber-attack cash outflows and losses.

Marsh Cyber Risk Self-Assessment

To assist any business with understanding their vulnerabilities and strengths, Marsh has created a Cyber Self-Assessment tool which provides a maturity analysis of an organisation’s cybersecurity program based on user responses.

Contact us here for the self-assement.

For more information on Marsh’s cyber insurance, please do not hesitate to contact our team.

^{1. https://www.afr.com/technology/figures-show-australian-data-breaches-on-the-rise-20190207-h1ayg}

^{2. https://www.acic.gov.au/about-crime/organised-crime-groups/cybercrime}

This page contains general information, does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Pty Ltd on request. Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) arranges the insurance and is not the insurer.