In this video, Tim Crown, the founder and chairman of Insight Enterprises, discusses the importance of cybersecurity in today’s digital world. He emphasizes the need for every individual within an organization to be involved in the conversation about cybersecurity and the ultimate goal of having “no news,” meaning that all systems and individuals were protected from cyber threats.
In this video, Jason Rader, CISO for Insight Enterprises, discusses the evolving role of the Chief Information Security Officer (CISO) in modern organizations. Rader highlights the importance of the CISO being a business enabler, with a deep understanding of the various lines of business and their security needs. He also touches on the growing need for CISOs to be more interactive with the board of directors and for boards to have cybersecurity expertise, due to new SEC rulings. Rader describes the CISO’s role as a partnership with the board, enabling them to advise on security matters and move out of the “dark rooms” and into the boardrooms.
So, why are cyber insurance applications so challenging?
Due to the complex nature of online business, there are numerous aspects to measure. While commercial insurance applications are still thorough and complex in traditional insurance, cyber insurance applications are particularly tricky to fill out, especially for small businesses. Many applicants are uncertain about what information to provide, resulting in misinformation, which leads to claim denials or insurance coverage gaps.
Digital assets, which refer to anything digital that holds value to the business, are critical in preparing for a company’s insurance application.
Examples of digital assets include data, training materials, client information, specialized programs, and cryptocurrency. A digital assets inventory should list and organize all of the digital assets a company possesses while also demonstrating how each asset relates to the company’s revenue, cash flow, or essential business functions. However, manual labor and time are required to prepare a digital assets inventory, which is why many companies don’t realize its importance.
Fortunately, SecondSight’s pre-underwriting solution offers a faster, more accurate way to inventory digital assets.
It provides a clearer picture of a company’s overall risk and risk management, which is vital to share with the insurance company. Knowing what you need is crucial for any business owner who cares about their business inside and out, and it improves the company’s chance of receiving ideal coverage and rates.
A digital assets inventory also provides a better picture of a company’s overall digital risk, which is the unexpected exposure to cybercrime and other consequences of online presence. Calculating digital risk can help identify weak spots, allowing a company to focus on updating and correcting that issue before it leads to catastrophic consequences. For example, if a small product delivery service’s program for sorting and categorizing client data is poorly protected, it could be hacked, and the company could lose its revenue overnight. However, if managers know their program’s weaknesses, they can purchase better security or other systems to protect that information, improving their chances of receiving coverage for cybercrime claims.
Providing a more accurate picture to the insurance company also increases the chances of receiving coverage for cybercrime claims, avoiding potential claims denials.
Cybercriminals are becoming more daring, and many companies are paying ransoms instead of claiming insurance because they might pay more to repair the damage. Detailing and providing the most accurate and clear company data is one of the best ways to avoid these outcomes and the abilities of cybercriminals.
Ultimately, every company should have a clear understanding of their digital assets, their risk factors, and where they stand. SecondSight’s Risk Workbench for pre-underwriting can help any digital company quickly know their standing and understand how it changes over time. Digital assets change frequently, and it’s critical to document them accurately. Digital risk can also be accurately measured and mitigated with the right tools.
But as more companies turn to cyber insurance, the industry is facing some challenges. Premiums are becoming more expensive, and many companies are being denied their claims. So what does the future of cyber insurance look like? Some people think it will continue to grow, while others think it might collapse or shift.
One way cyber insurance could change is by expanding to cover more tech, like driverless cars. Driverless cars are much more complicated to insure because the risk is different. It’s hard to determine fault if there’s an accident when tech is the driver of one of the vehicles. But don’t worry, there’s hope. Many experts predict that property and casualty insurance will reduce over time, and cyber insurance will be the category that takes over.
And get this – some people claim that in the next 50 years, the cyber insurance industry will grow to eventually equal property and casualty insurance, which is currently worth around $500 billion in the US. That’s about 60 times larger than the market is now!
But here’s the thing: the way cyber insurance evaluates risk is not working. It’s based on a formula that calculates the expected frequency times the expected severity, which is similar to the traditional way of measuring risk. But it’s not enough in the digital age, where the likelihood of occurrence is difficult to measure without a clear picture. And that’s where SecondSight comes in.
SecondSight provides a clear picture of a company’s risks, so they can properly assess their digital risk and mitigate some of that risk. One way to do this is by creating a digital asset inventory. This is basically a list of all the digital assets a company owns and utilizes, from images and PowerPoints to software plugins and programs. It might take a while to complete manually, but SecondSight can help by using its inventory builder features. Once a company has a comprehensive list, they can understand how each digital asset correlates with the business, how they contribute, and how they affect business continuity.
And the best part? Having a digital asset inventory not only helps companies find the holes in their cyber security, but it also makes them more insurable. If an insurance company has a digital assets inventory, they can see exactly what a company might be missing and how they’re protecting themselves. With SecondSight, both the insurer and the insured benefit, and it creates a world where cyber insurance can become equal to other types of insurance like property and casualty.
So there you have it! The future of cyber insurance is a bit uncertain, but we know that creating a clear picture of digital risk is the next step. With SecondSight, companies can protect their digital assets and become more insurable.
First off, let’s talk about the different types of cyber risks out there. Cyber risks usually come from outside of your organization, with hackers and cybercriminals using tactics like phishing, ransomware, malware, and more to infiltrate your company’s digital systems. Phishing involves sending fraudulent emails that appear to be legitimate, hoping to get people to click on a link and enter their personal information. Ransomware, on the other hand, locks up your computer programs and data, and only unlocks them if you pay a ransom. Malware involves using a file or code to infect and explore a program or computer, allowing hackers to steal information, gain unauthorized access to locked systems, and destroy records.
Fortunately, there are ways to protect yourself from these types of attacks. Cyber risk controls fall into four main categories:
Network controls: These include firewalls, email security, and remote access VPNs that keep people out of your company’s network.
Digital access controls: These involve password-protecting important information and assets, and limiting access to only those who need it.
Organization controls: These involve creating a protocol for your company and training employees on safe cyber policies.
Worker/employee controls: These ensure that people are well-trained and vigilant about avoiding cyber risks.
To ensure that your business is well-protected, you’ll need to create a digital assets inventory to understand where your resources lie and how they relate to your everyday business activities. With a good understanding of your digital risks and the proper protective measures in place, you’ll be able to keep your business safe from cyber attacks and recover from any losses that may occur.
In short, cyber risk controls are a crucial part of any business’s digital security strategy, and it’s important to stay informed and vigilant when it comes to protecting your company from cyber threats.
So, how can you make sure your business is insurable in the digital world? It’s not just about having good software and cyber protection. You need to know what your digital assets are, and how important they are to your business. After all, you can’t protect what you don’t know about! That’s where the digital asset inventory comes in, and it’s a game-changer.
Think of it this way: your digital assets are like the engine that drives your business. You need to know what they are, how they work, and how important they are to your bottom line. Are you an online retailer? You better know what information is stored in your programs, and how vital that information is to fulfilling customer orders. A cyberattack that steals that information could be a disaster for your business, and cyber insurance won’t cover it if you haven’t properly identified and protected your assets.
That’s why a digital asset inventory is critical. It’s a two-step process that helps you identify and prioritize your assets. First, you need to figure out what assets you have, and that includes anything that’s created and stored digitally. From videos and images to cryptocurrencies and NFTs, your list will be unique to your business. Next, you need to determine how each asset is correlated to things like revenue and cash flow, and how they impact your business metrics. It’s like taking inventory of your business’s engine and figuring out which parts are critical to keep it running smoothly.
Why is this so important? It’s all about exposure, which is the risk of financial loss due to business risks. Exposure is the monster under your bed, the thing that keeps you up at night. You need to know your exposure and prioritize your assets to mitigate your risk. This is the key to staying afloat in the digital age, and Secondsight is here to help. We’ll support you, help you understand your risk, and provide you with the tools to protect your business. So, what are you waiting for? Let’s get started on that digital asset inventory today!
