More and more, our technology is at risk of a cyber attack.
In fact, just today the Wall Street Journal reported that Iran has hacked into the Navy’s unclassified network.
While we can fix the computers that were attacked, the damage done in terms of data exfiltration and malware infiltration is another matter.
To fix the computers, we can wipe them, swap out the drives, or actually replace the whole system.
But the security breaches still often impose lasting damage, since you can’t get the lost data or privacy information back or as they say “put the genie back in the bottle.”
Also, you aren’t always aware of hidden malware that can lie dormant, like a trojan horse, nor can you immediately contain the damage of a spreading computer virus, such as a zero-day attack.
According to Federal Times, on top of more traditional IT security precautions (firewalls, antivirus, network scanning tools, security settings, etc.), many organizations are taking out cybersecurity insurance policies.
With insurance coverage, you transfer the risk of cybersecurity penetrations to cover the costs of compromised data and provide for things like “breach notification to victims, legal costs and forensics, and investigative costs to remedy the breach.”
Unfortunately, because there is little actuarial data for calculating risks, catastrophic events such as “cyber espionage and attacks against SCADA industrial controls systems are usually not covered.
DHS has a section on their website that promotes cybersecurity insurance where they state that the Department of Commerce views cybersecurity insurance as an “effective, market-driven way of increasing cybersecurity,” because it promotes preventive measures and best practices in order to lower insurance premiums and limits company losses from an attack.
Moreover, according to the DHS Cybersecurity Insurance Workshop Readout Report (November 2012) cybersecurity insurance or risk transfer is the fourth leg of a comprehensive risk management framework that starts with risk acceptance, risk mitigation, and risk avoidance.
I really like the idea of cybersecurity insurance to help protect organizations from the impact of cybersecurity attacks and for promoting sound cybersecurity practices to begin with.
With cyber attacks, like with other catastrophes (fire, flood, accident, illness, and so on), we will never be able to fully eliminate the risks, but we can prepare ourselves by taking out insurance to help cover the costs of reconstituting and recovery.
Buying insurance for cybersecurity is not capitulating our security, but rather adding one more layer of constructive defense. 😉
(Source Photo: Andy Blumenthal)