All businesses with an online presence face a range of cyber risks. Prominent among them are data breaches, which constitute a class of vulnerability that the public is particularly concerned about, especially in light of recent high-profile data breaches like that which affected Facebook in September 2018. There’s no way to eliminate cyber risks like data breaches but there’re a variety of measures that can help businesses manage and mitigate risks.
As with so many other risks, the best way to manage cyber risks like data breaches is to reduce the risk and exposure as much as possible. Reducing the risk protects a business and its customers and clients from having their data compromised while reducing the exposure protects a business from the consequences of data breaches.
Reducing exposure is best accomplished by purchasing cyber liability insurance. Reducing the risk is best accomplished by implementing the security measures that best suit the business and the type of data being held. Unfortunately, there isn’t a global standard or a solution that suits all organisations.
Regardless of which security measures are chosen, it’s vital that security products and services be continuously monitored and kept up to date. Businesses must also take steps to ensure basic cyber safety practices are implemented. This includes measures like good password practices and employing data encryption where relevant. This won’t create a foolproof system that eliminates the risk of a data breach occurring but it will significantly reduce the risk.
In addition to implementing practices and procedures that prevent data breaches, a good data breach risk management strategy will include guidelines that should be followed in the event a breach does occur. Such guidelines should specify whether IT, PR, legal etc. professionals need to be engaged and should also cover protocols for:
Managing cyber risks like data breaches requires an integrated approach designed to:
Watch the webinar, Getting your brain around cyber: A multi-faceted risk, for more tips on improving an organisation’s cyber resilience and insights into cyber trends.
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Disclaimer - All contents of this article are intended for general information/guidance purposes only and not intended to be an offer or solicitation of insurance products or personal advice or a recommendation to any individual or business of any product or service. This article should not be relied on for legal advice or policy coverage and cannot be viewed as a substitute to obtaining proper legal or other professional advice, or for reading the policy documents. You should read the policy documents to determine whether any of the insurance product(s) discussed are right for you or your business, noting different limits, exclusions, terms and conditions apply in each country or territory, and not all cover is available in all countries or territories.