Introducing our cyber team, which helps clients understand their exposure to cyberattacks.
The General Data Protection Regulation (GDPR) is coming into force on 25 May 2018. Everyone is aware of GDPR’s ticking clock and no doubt your business is undergoing huge changes to make sure it’s compliant in time.
GDPR is the biggest shake-up of European data protection rules in two decades and it will fundamentally change how businesses handle personal data. If you suffer a breach from May onwards and your customer’s personal data is at risk, you will need to notify the authorities when a breach occurs – within 72 hours. That’s no easy feat during the chaotic aftermath of a cyber attack. Again, the general advice to businesses is: if you’re as cyber secure as possible – both internally and throughout your supply chain – then you’re not as vulnerable to a data breach in the first place. Businesses need to heed the advice of professionals, and understand their cyber risk inside-out. Then take actions to close any gaps.
Data breaches are becoming more frequent and more virulent than ever before. And cyber criminals are also growing in sophistication by the day. Data breaches such as Equifax and Uber as well as attacks including Wannacry have led to millions, if not billions, of personal files being jeopardised recently. 2017’s cyber attacks alone have served as a wake-up call for businesses of all sizes. The difficulty is to know exactly how to arm yourself against these potentially devastating attacks – that are not only financially costly, but reputationally damaging as well.
Following a growing concern from clients in regard to cyber risk, insurance company FM Global has created a cyber team to help its clients understand their exposure to cyberattacks and what steps they should take to protect their businesses as best they can.
“Ultimately, risk managers are looking to us for education on the subject, a better understanding of their risk, as well as for practical loss mitigation solutions to help them prevent a cyber loss,” says Grace Ries, FM Global’s Manager of Cyber Risk Insurance Products. “Cyber risk is no longer just an IT issue but an enterprise risk, business exposure.” she adds.
While many organisations are grappling internally with how to become compliant by May, businesses also need to make sure that they understand what’s going on in their third party networks as well. A hole in just one of your suppliers’ armour can expose and send shockwaves down your entire supply chain.
As with the property insurance they offer, FM Global understands that a client’s cyber exposure is based on risk factors that are unique to each business. It therefore carries out a thorough risk assessment that provides clients with recommendations that they can put into play immediately, and in doing so, mitigate their cyber risk. Above all, FM Global believes that the majority of loss – whether it’s from a cyberattack or a natural disaster – is preventable.
“Cyber happens to be one of the top of mind issues at the moment. FM Global’s value proposition to our clients is that we share that common understanding and value, that the majority of loss is preventable. If you take that into any of the perils and exposures you can apply that philosophy – from natural hazards to cyber risks. As an organisation we are constantly innovating, and looking at new technologies and coverages. Above all, our advice is given on the basis of science and research,” says Philip Johnson, Managing Director of FM Insurance Co. Ltd.
This science and research-based approach gives businesses the peace of mind that they are prepared for any eventuality. While no one is immune, arming yourself against a breach in the first place must be a priority for risk managers and the Board. If organisations switch to an ‘at-risk’ mindset, they will be more protected against cyber criminals.
GDPR talks are happening all around us and cyber risk and data protection are more significant than ever before. The legislation changes may be difficult for businesses to navigate over the coming year. However, in the long-run, it puts consumers first – and that can only be a positive development for European businesses.