Risk Insider: Kevin Kalinich

Managing Malware Masterfully

By: | September 1, 2016 • 2 min read
Kevin Kalinich is the global cyber risk practice leader for Aon Risk Solutions, focusing on identifying exposures and developing insurance solutions. He can be reached at [email protected]

As ransomware morphed from low-severity consumer phishing to targeting entire networks of computers in hospitals, universities and businesses, it became more costly.

It also looks like email recipients have a lot more learning to do.

According to 2016 Verizon research, 23 percent of recipients open phishing messages and 11 percent of recipients click on attachments.

Ransomware, however, is just one version of “malware,” which includes all types of hostile or intrusive software, such as computer viruses, worms, trojan horses, spyware, adware, scareware, and other malicious programs. Malware, which stands for “malicious software,” can take the form of executable code, scripts, active content, and other software.

Entities should consider malware risks on an enterprise level.  It’s not just about IT. All employees, partners, customers and third-party outsourced providers should be considered.

The number of unique kinds of malware jumped from six million at the beginning of 2015 to just over 12 million by the end of the year, and the category of malware specifically targeting mobile phones has seen dramatic growth.

Organizations should quantify potential malware exposures in terms of financial statement impact and review potential available insurance coverage.

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Malware could trigger a number of different lines of insurance, such as crime ($81 million Bank of Bangladesh heist), kidnap & ransom (Hollywood Presbyterian Medical Center’s $17K bitcoin ransom), property (Stuxnet in Iranian nuclear facility & other grid/manufacturing), general liability (Jeep Cherokee and medical device hacks), professional liability (Internet of Things service interconnectivity) and marine/supply chain (Islamic Republic of Iran Shipping Lines 2011).

Entities should consider malware risks on an enterprise level. It’s not just about IT. All employees, partners, customers and third party outsourced providers should be considered.

Even with top notch defenses, however, how do you defend against something that may be inevitable? Is there anything a business can do to protect against losses from malware? Many malware attacks exploit known bugs in software, and attackers depend on victims not installing patch updates. There are a number of technological and procedural risk management methods to help reduce the financial statement impact from malware, including:

  • Vet software purchases from a security standpoint as well as an operational standpoint.
  • Train employees regarding phishing, mobile apps, attachments, links and the like. Instruct employees not to open email from unknown sources and to verify sources before opening attachments or clicking links in any email, IM, or posts on social networks.
  • Ban workplace usage of unnecessary file types, software applications, websites, and BYOD downloads.
  • Improve detection and remediation of malware incidents.
  • Segregate data by priority classification.

Kalinich chart

 

 

According to the recent book, Dark Territory: The Secret History of Cyber War (June 2016):

“The only completely secure computer is a computer that no one can use … They have given up on the idea that they can somehow make a black box that nobody can get into.”

It turns out that incident response is as important as prevention from a balance sheet impact standpoint. Is there a contingency plan or business continuity plan in place? Some suggested actions to take if your computer is infected with malware:

  • Immediately stop using any computers on an infected network that performs sensitive activities.
  • Contact your IT department or a qualified IT professional to analyze your computers and network, and to remove the malware.
  • After you have taken appropriate steps to remove malware, change the passwords for any user accounts or systems that were accessed while using the infected computer.
  • Promptly notify the appropriate insurance carriers.

More from Risk & Insurance

More from Risk & Insurance

Risk Management

The Profession

Wawa’s Director of Risk Management knows that harnessing data and analytics will be key to surviving the rapid pace of change that heralds new risk exposures.
By: | July 27, 2017 • 5 min read

R&I: What was your first job?

My first job was at the age of 15 as a cashier at a bakery. My first professional job was at Amtrak in the finance department. I worked there while I was in college.

R&I: How did you come to work in risk management?

A position opened up in risk management at Wawa and I saw it as an opportunity to broaden my skills and have the ability to work across many departments at Wawa to better learn about the business.

R&I: What is the risk management community doing right?

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The advancements in analytics are a success for the industry and offer opportunities for the future. I also find value in the industry focus on emerging and specialty risks. There is more alignment with experts in different industries related to emerging and specialty risks to provide support and services to the insurance industry. As a result, the insurance industry can now look at risk mitigation more holistically and not just related to traditional risk transfer.

R&I: What could the risk management community be doing a better job of?

Developing the talent to grow with the industry in specialization and analytics, but to also carry on the personal connections and relationship building that is a large part of this industry.

Nancy Wilson, director, quality assurance, risk management and safety, Wawa Inc.

R&I: What was the best location and year for the RIMS conference and why?

I have had successes at all of the RIMS events I have attended. It is a great opportunity to spend time with our broker, carriers and other colleagues.

R&I: What’s been the biggest change in the risk management and insurance industry since you’ve been in it?

I think the biggest challenge facing most companies today is related to brand or reputational risk. With the ever-changing landscape of technology, globalization and social media, the risk exposure to an organization’s brand or reputation continues to grow.

R&I: What emerging commercial risk most concerns you?

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The changing consumer demands and new entrants into an industry are concerning. This is not necessarily something new but the frequency and speed to which it happens today does seem to be different. I think that is only going to continue. Companies need to be prepared to evolve with the times, and for me that means new risk exposures that we need to be prepared to mitigate.

R&I: Are you optimistic about the U.S. economy or pessimistic and why?

I try to be optimistic about most things. I think the economy ebbs and flows for many reasons and it is important to always keep an eye out for signs of change.

R&I: What have you accomplished that you are proudest of?

I am fortunate to have opportunities professionally that make me proud, but I have to answer this one personally. I have two children ages 12 and 9 and I am so proud of the people that they are today. They both are hardworking, fun and kind. Nothing gives me a better feeling than seeing them be successful. I look forward to more of that.

R&I: What is your favorite book or movie?

This is really hard as there are too many favorites. I do prefer books to movies, especially if there is a movie based on a book. I find the movie is never as good. I have multiple books going at once and usually bounce back and forth between fiction and non-fiction.

R&I: What’s the best restaurant you’ve ever eaten at?

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I have eaten at a lot of different restaurants in many major cities but I would have to pick Horn O’ Plenty in Bedford, PA. It is a farm to table restaurant in the middle of the state. The food is always fresh and tastes amazing and they make me feel like I am at home when I am there. My family and I eat there often during our trips out that way.

R&I: What is your favorite drink?

I do love a good cup of coffee (working at Wawa helps that). I also enjoy a good glass of wine (red preferably) on occasion.

R&I: What is the most unusual/interesting place you have ever visited?

Vacations aside, I do get an opportunity to travel for work and visit our food suppliers. The opportunities I have had to visit back to the farm level have been a very interesting learning experience. If it wasn’t for my role, I would have never been able to experience that.

R&I: What is the riskiest activity you ever engaged in?

My husband, kids and I recently did a boot-camp-type obstacle course up in the trees 24 feet in the air. Although I had a harness and helmet on, I really put my fear of heights to the test. At the end of the two hours, I did get the hang of it but am not sure I would do it again.

R&I: If the world has a modern hero, who is it and why?

The first people that come to mind are those who are serving our country and willing to sacrifice their own lives for our freedom.

R&I: What about this work do you find the most fulfilling or rewarding?

Every day is different and I have the opportunity to be involved in a lot of different work across the company.

R&I: What do your friends and family think you do?

My husband and children have a pretty good sense of what I do, but the rest of my family has no idea. They just know I work for Wawa and sometimes travel.




Katie Siegel is an associate editor at Risk & Insurance®. She can be reached at [email protected]