Managing Cyber Risk for Mid- and Large-Sized Companies: Why Each Requires a Specialized Approach
There’s no doubt new technology brings about vast advancements in how we operate and conduct our business. But businesses must remain ever-vigilant in a tech-savvy world: With every new technological feat comes an opportunity for advanced cyber risk.
For example, ransomware attacks continue to grow and evolve; McAfee reported a 69% increase in new ransomware from Q3 to Q4 of 2020. A survey of IT managers by Sophos in early 2020 found that 59% of companies in the U.S. experienced some type of ransomware attack, with only 25% of those attacked successfully stopping the attack before data was encrypted.
The average cost of remediation in the U.S. was estimated to be more than $600,000.
“Ransomware attacks are the most prevalent cyber risk we’re seeing right now,” said Danielle Librizzi, Head of Professional Liability at QBE North America, “but it’s not the only one. Data breaches, business email compromises and denial of service attacks and more can all pose massive threats to an operation.”
Businesses of all sizes need to be on high alert when it comes to managing these cyber risks. Typical property & casualty coverage can be limited and may exclude cyber risk, making cyber coverage and cyber risk planning a must. Just because the threats are similar for large and mid-sized businesses, it doesn’t mean they need the same insurance solution from their carrier.
“A mid-sized business should have a different solution than a large operation. Mid-sized companies may not be in the same position as larger operations with respect to risk management resources and budget, and the impact of a cyber breach could be much more devastating,” Librizzi explained.
At a time when the cost of a cyber breach is on the rise in tandem with the growing threat of bad actors, implementing best practices not only helps thwart an attack but will also assist companies in securing the best possible insurance protection.
Here are just some of the ways mid-sized businesses and larger operations should be looking at their unique cyber response plans.
To learn more about QBE North America, please visit their website.