Companies have started utilising traditional risk transfer mechanisms to attempt to mitigate cost impacts if a data breach occurs with cyber security threats on the rise worldwide,
RSA recently surveyed 272 safety professionals worldwide and found that 40 percent of the organisations that responded have previously bought cyber insurance, with another 50 percent contemplating or actively seeking cyber insurance next to their owner builder insurance choices. Telstra's Cyber Security Report 2017 found that 21.7 percent of Australian organisations aren't currently using or even contemplating cyber insurance. Companies seem to be somewhat complacent when it comes to cyber theft. In reality, our worldwide survey found that just 22 percent of organisations have zero tolerance for cyber theft of intellectual property and, more astonishingly, a quarter of all respondents feel that losing between 11-20 percent of earnings from cyber theft is acceptable. This calls into question whether the growth of this cyber-attack surface and a limited comprehension of how to use insurance as part of a cyber security strategy ensures that IP and revenue loss because of a cyber-attack is now accepted as just another cost of doing business. Have we become too nonchalant in what we deem as acceptable cyber occurrence in business or is this the realistic attitude for organisations to have? The passing of the mandatory data breach notification Laws in Australia sends the perfect message - that cyber security is taken seriously by authorities, which Australia is saying that this should be true in business, too. A laisses-faire attitude to cyber security will no longer cut it. The legislation also heightens the situation of cyber insurance, particularly for small to medium enterprises, which do not necessarily have the in-house capacity to execute and fulfill the demands of the legislation. But while growing, cyber risk insurance remains a comparatively new field. And while Australian businesses are increasingly turning to cyber risk insurance alongside their owner builder constructions insurance, many still do not know to how to go about buying it. Ideally, your cyber insurance coverage should standalone, instead of being an addendum to an existing policy. In addition, it is advantageous if it can be customised to suit your organisation. The same as regular family or automobile insurance, businesses also have to understand the degree of coverage a variety of cyber insurance policies available provide.
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