Cyber Insurance Ransomware

Cybersecurity is more important now than ever, and with more and more businesses around the world being affected by cyberattacks, having adequate cyber insurance has become essential.

Due diligence is a crucial part of getting the right cyber insurance policy. Companies should evaluate their potential risks and vulnerabilities in order to determine if they need a robust policy or if a cheaper, lower-coverage policy can suffice. Knowing what type of policy they need can help them save money while increasing assurance that they are properly covered if an attack occurs.

Companies need to understand that getting the right cyber insurance policy comes at a cost, as premiums tend to increase significantly when coverage increases. However, with proper due diligence, companies can make sure that their policies meet their needs without paying too much for unnecessary coverage.

Cybersecurity companies are recognizing “cyber extortion coverage” or “ransomware cyber insurance” as a critical element in protecting against the increasing ransomware threats and cyber attacks. This type of insurance protects organizations from losses due to such malicious activities, such as data breaches, ransomware threats, and other forms of cyber attacks.

By providing this type of coverage, cybersecurity companies can give their clients greater security and peace of mind. This coverage helps ensure that they won't be responsible financially for payments associated with an attack that results in the loss or theft of sensitive data. It also provides protection against any reputational losses that may arise after such an attack has taken place.

Ransomware & cyber extortion cyber insurance

Ransomware cyber insurance, also known as cyber extortion coverage, can protect organizations and their customers from the financial losses associated with a malicious attack. Cyber security companies offer this coverage under their cyber liability policies, typically included with a sublimit to help cover medical expenses related to those affected by the attack. Such policies allow companies to respond quickly and effectively to a ransomware attack, limiting the downtime and damage caused. By providing this protection, cyber security companies can ensure that businesses have a back-up option in case of malicious attacks or other unforeseen disasters.

What is Cyber Insurance?

Cyber insurance offers an additional layer of security for businesses against the ever-growing risk of a ransomware attack. Ransomware is a type of malicious software designed to block access to critical data on your computer system until a ransom is paid. By purchasing cyber insurance, companies can minimize the financial impact if they are hit by such an attack, as the policy reimburses victims for any losses incurred as a result of the incident. Cyber insurance also offers security consulting services such as malware removal and web application testing that can help reduce the risk of being targeted in the first place. Companies looking to protect themselves from ransomware should consider investing in cyber insurance to ensure their critical systems are protected against these kinds of threats.

Cyber Insurance& ransomware Protections

Cyber insurance is increasingly becoming an integral part of a company's cybersecurity policy in the face of fast-growing cybercrime threats like ransomware. Ransomware attacks can cause significant financial loss and affect companies' operations in many ways. Cyber insurance acts as a safeguard against such malicious programs and financially mitigates any losses related to the attack and helps companies get back on track without too much disruption. Companies must ensure that they have cyber insurance policies in place to protect themselves from ransomware attacks which have the potential to wreak havoc on any system.

Cyber insurance provides protection against ransomware. Cyber insurance works by providing coverage for financial losses and other damages caused by a hacker, malware or ransomware attack. Cyber insurance policies often cover losses related to data privacy and security, reputation damage, business interruption, and legal expenses. This type of coverage is increasingly becoming more critical as companies are increasingly exposed to cyber-attacks like ransomware. Ransomware is malicious software that locks down computers and networks, preventing users from accessing their own data until a certain amount of money is paid in return for the unlock code. With cyber insurance in place, organizations can ensure that their operations are protected from the financial costs associated with these malicious attacks.

Cyber insurance protects you by transferring loss

Cyber criminals are on the rise, and companies need to do whatever they can to combat attacks from ransomware, malware and phishing attempts. Cyber security companies offer organizations a comprehensive solution for cyber extortion coverage that helps protect against costly losses associated with successful infiltrations. Cyber extortion coverage can be included within a cyber liability policy as a sublimit or it can be secured separately, depending on your company’s risk exposure profile. With this coverage in place, businesses can rest assured that their cyber risk is adequately covered and their reputation is protected.

Cyber insurance Due diligence to ensure adequate protection

With the increasing threat of cyber fraud, companies must perform some due diligence to ensure they have adequate protection. Cyber insurance policies protect businesses from any financial losses caused by cyber-attacks. However, without proper due diligence, companies may end up paying higher premiums or getting policies that do not cover all aspects of the risk.

Therefore, to reduce costs and get the right coverage, companies need to perform thorough research and find insurance providers who offer reasonable terms and conditions with their cyber insurance policies. Companies must also consider factors like premiums, deductibles, limits, and exclusions before purchasing a policy.

By doing so they will be able to get the most suitable coverage for their business at an affordable price.

Cyber insurance due diligence is a key process for any business when evaluating the cost and level of protection offered by their cyber insurance policy. As cyber risks continue to evolve, companies must always be aware of the increasing cost and premiums associated with their current policy and evaluate whether it is enough to keep up with the latest malicious threats.

In order to ensure the most effective protection, companies should conduct due diligence on their cyber insurance policies. This not only involves understanding how claims will be handled in different scenarios, but also considering the cost of increased coverage and extra premium costs that might be necessary. By understanding their risk profile and protecting themselves adequately, businesses can ensure they are equipped if they are ever faced with a malicious attack.

Cyber insurance premiums will continue to increase

Cyber attacks are rising yearly, with more businesses falling victim to cyber- Attacks resulting in security breaches and financial losses. As a result, more companies are now investing in cyber insurance policies to protect their data and minimize damages. However, this increased demand of cyber insurance policies has led to an increase in policy premiums, making it costlier for businesses to obtain the coverage they need. In this article, we will discuss why cyber insurance premiums continue to rise and suggest potential solutions for companies looking for coverage.

Cyber insurance must be included in your risk management strategy

Cyber insurance has become an essential part of any business's risk management strategy. As cyber-attacks become more frequent and destructive, enterprises are turning to cyber insurance providers to protect themselves from costly damages. But as the amount of claims for cyber-attacks increases, so does the increase in premium costs to cover those losses. This article will explore the reasons why we can expect to see a continuous increase in cyber insurance premiums over time.

Cyber insurance policies are becoming increasingly popular as more and more companies are seeing the benefit of having a policy in place to protect their business from cyber-attacks. As more companies realize the impact of cyber security breaches, the demand for cyber insurance is likely to increase, driving up premiums.

As prices increase, so too does the importance of having a comprehensive cyber insurance policy that covers all the possible loopholes that can occur during an attack. With this in mind, businesses are wise to explore their options when selecting their providers and to ensure they get the best coverage available for their needs. By exploring these options and understanding what is covered under different policies, firms can make an informed decision about which provider offers them the most protection at a competitive premium cost.

Enterprise Risk Management vs. Traditional RM

Enterprise Risk Management (ERM) introduces effective risk management (RM) by attacking the issues differently to assess and remediate risks that affect the business. It takes a more robust approach than traditional Risk Management.

Traditional Risk: Business unit leaders, directors, and managers were responsible and accountable for risks in their respective departments. An example is the CFO, or Comptroller is responsible for risks relating to business cash flow and finance. This approach is very siloed.  Having some type of Risk management is better than not having it, but this approach does have its shortcomings:

• Unidentified risks that don’t fit nicely within a silo. Risks can be anywhere, and sometimes they do not necessarily align with the organizational chart resulting in unidentified risks.

•  Some risks may span multiple business units. If one leader identifies the risk the business may not understand its true impact and likelihood if it spans multiple departments.  An example of this would be a privacy law that affects Spain for example. If the compliance officer ranks this as very low risk because there is no business/consumers or data from Spain residents. However, down the hall in another c-suite office, there are ongoing talks about a possible partnership with a platform in that same country.

•  Silo risk owners may address a risk in their domain but not understand that the mitigations of their risk can affect another department.  A classic example is an IT change that mitigates some technical risks but impacts usability for other departments. This leads to frustration, confusion and ‘shadow IT’

•  Traditional risk typically focused on internal risks. ERM focuses on external factors as well

  Holistic Top-Down Enterprise Risk Management

Enterprise Risk Management attempts to fill these gaps by incorporating a holistic, all-hands-on-deck approach to risk management. EMR is a top-down approach that starts from a strategic approach that trickles down to the operational level (Beasley, 2016).

 ERM begins with an understanding of what the organization is trying to achieve short and long term. Identifying all assets (people, technology, data, solutions, networks) ranking those assets, identifying risks and then ultimately remediation and monitoring. It is key to understand that top management and key staff are involved in this process, not just a department leader.  

 Identify all risks. Whereas with traditional risk management, risks that fall out of a department can be missed, EMR focuses on strategy, compliance, operations, and tactics to attempt to address all risks (internal and external).  

The output of EMR should be a risk register that clearly identifies the enterprise's top risks that identify:

• Risk identification number

• Owner, responsible, and accountable parties

• Risk description

• Risk Remediation

• Risk milestones

• Key Risk Indicators

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EMR takes a more holistic approach to risk management and incorporates all levels of the business (strategy, tactical, operational). EMR focuses on internal and external risks. EMR is a cycle and not a project; the focus is always on understanding the business's top threats, their remediations if they are being implemented, and how effective those mitigations are.  This approach is the next step in the evolutionary process of risk management and provides one of the most impactful and thorough methods for risk management.

Written by:

Carlos Neto 1/9/2023

References:

Beasley , M. (2016). What is enterprise risk management? - North Carolina State University. NC State . Retrieved January 10, 2023, from https://erm.ncsu.edu/az/erm/i/chan/library/What_is_Enterprise_Risk_Management.pdf

Why a vCISO may be right for your organization cyber security

Since the start of the COVID19 pandemic, several societal changes have shaped how firms function in the current climate. Many firms have implemented a work-from-home model to help prevent the spread of the novel coronavirus and ensure employees are comfortable with their surroundings. What many organizations didn’t anticipate are the cyber security-related risks.

Once employees leave the security of their offices, they increase their attack surface and open themselves and their employer to attendant Information Security vulnerabilities that may come with working remotely. Remote work changes have prompted heightened instances of cyber attacks that have worsened in style and quantity over time. The pandemic has created the perfect environment for hackers to attack with more accuracy, and with greater cost to the firm, than ever. Learn more about remote working in relation to the pandemic. 

How a vCISO can help protect your firm from cyber attacks

A vCISO can function as an additional set of eyes that constantly monitors your firm’s security operations. The additional security will aid in preventing possible security breaches. A vCISO can also bring expertise to assist in developing a strategy to strengthen your firm’s security program.

The benefits of a vCISO: 

• A board-level cyber security consultant fulfilling the CISO responsibilities 

• A team of security risk assessment experts 

• Employee security awareness education 

• Dark Web Monitoring 24/7/365

• Full enterprise risk management for any required compliance 

• Comprehensive third party/vendor  management 

• Compliance support for NIST, ISO, GDPR, CCPA, NYDFS, PCI/DSS among others

• A more affordable approach as opposed to hiring a full-time CISO

• Eliminate internal training costs and have our seasoned experts handle your security 

CyberSecOp offers vCISO services. Click here to learn more.

Moving to the cloud: Efficiency and Reduced Organizational Risk Posture

Moving to the cloud: A Study in Security, Efficiency & Reduced Organizational Risk Posture

A recent Gartner study indicates that cyber crimes are at an all-time high, up 30% year over year. This is and should be of tremendous concern to C-suite executives and boards of directors.

The root cause of cybercrimes varies; however, most organizations will experience vulnerabilities arising from technological gaps due to neglected software patching initiatives, outdated firmware, continued use of hardware beyond manufacturer ‘end of life’ standards, limited resources, limited budgets, multiple new compliances, and of course externalities such as the recent global pandemic.

In efforts to protect against threat actors while simultaneously acknowledging their companies’ limitations, more and more C-suite information security executives are proposing complete moves to cloud-based computing environments along with the ‘shared resource’ model characteristic thereof.  This will help ensure information security integrity, reduce or eliminate the threat of bad actors wreaking havoc on the company’s information systems and will allow the organization to achieve its goals with some element of cost-efficiency. To ensure these systems are implemented in the most efficient manner possible, many concerns will turn to Managed Security Services Providers (MSSPs).

1.       Lack of resources create an unintended risk appetite

Some specific security challenges organizations face in today’s operating environment, based on experience include: A lack of resources creates an unintended risk appetite leads to organizational dysfunction and job loss. Organizations need to provide their CISO with their own budget, independent of IT, and the CISO needs to report at the same level as the CIO with a direct line to the Board of Directors and should feel comfortable addressing any vulnerabilities that may arise, notwithstanding resource requirements to address them. Recently, we were tasked with performing a security assessment and reporting our results directly to the client’s Chief Information Officer. The Chief Information Officer, in turn, requested that we provide our findings simultaneously, at a joint meeting of the Board of Directors. The Chief Information Security Officer had previously briefed the board on the organization’s information security posture and had suggested that risk levels were at a minimum and that there were no vulnerabilities or deficiencies that could pose mission-critical faults; in this, the CISO had sought to ‘paper over’ problems that had not been budgeted for and instead treated with an ‘it’s your job, you fix it’ mentality, creating a lose-lose proposition. Our findings and report directly contravened what the Board had previously been told, and this led to the firm initiating a comprehensive systems audit which resulted in the dismissal of multiple information technology executives.

2.       Cloud Security Competency, Efficiency, and Cost-Effectiveness. As the cloud computing environment becomes mainstream, organizations will realize the competitive benefit of having so many competitors offering similar services. This allows organizations to seek out the best technology and team while adhering to internal resource limits.

3.       Application and Network Monitoring

This service is critical for identifying potential risks and attacks from internal and external threats and one of the single largest information security infrastructure areas of investment for companies today. CyberSecOp has seen a volumetric increase in requests for our Security Information and Event Management (SIEM), Managed Detection and Response (MDR), Data Loss Prevention (DLP), Security Operations Center (SOC) and Cloud Access Security Brokers (CASB) services over the last year, which dovetails with broader global market trends. With ransomware and data security breaches at an all-time high, organizations are looking to managed IT security and managed compliance services providers to bridge the resource gap.

4.       Data Security Governance Framework

Organizations are utilizing the cloud to aid with compliance, reducing the upfront cost of buying all the necessary security solutions and related resources needed to get them configured and managed; indeed, the focus has switched to using cloud and shared resources provided by managed IT and managed security providers.

5.       Enterprise Security Partners

Bringing on an Enterprise Partner enables companies to focus on those factors that promote business growth as opposed to focusing on back-end solutions and internal control structures.  In turn, the Enterprise Partner (MSSP) is often able to provide its services at a substantially more cost-efficient and competency structure than if the company had attempted to replicate those services internally; examples of specific areas of favorability are hiring and staffing the function, keeping up with and implementing vulnerability management, leaner staffing levels, and overall cost efficiencies.  

6.       Authentication 

Over the past year, we have seen a 70% increase in the adoption of multifactor authentication technologies, including but not limited to ‘password-lite’ cloud-based solutions capable of biometric authentication, geolocation fence authentication, anomaly detection, end-user based risk scoring, and evaluation. Partnering with an Enterprise Security Partner can ensure such technologies are rolled out across all organization information technology platforms in a coordinated and effective manner, with a minimum risk of non-adoption and systemic conflicts.

CyberSecOp provides proven Risk Management and Digital Transformation: As one of the most called on firms for security breach response services per Google Analytics, we have assisted with over 550 incident responses spanning 2019 and 2020. CyberSecOp helps organizations assess their cloud or on-premise environments and implement a security program that provides the safeguards needed in the cloud or on-premises. We also offer incident response and forensics teams to assist with containment, remediation, recovery from ransomware attacks, and other security breaches.