Transfer Business Risk

Cybersecurity risk is a frequent subject in today’s headlines and media.  Being proactive about reducing cyber risk is important. Why? The statistics show:

  1. Symantec 2016 Internet Security Threat Report: 43% of cyber attacks target small businesses (up from only 18% in 2011).
  2.  US National Cybersecurity Alliance: 60% of small companies are unable to sustain their businesses over six months after a cyber attack.

Business owners are increasingly turning to a cybersecurity insurance policy to transfer some of that business risk.  These two actions go hand-in-hand.

Anyone who has filled out the underwriting questionnaire for a cybersecurity insurance policy can tell you that the questions are technical in nature.  From a technical expert’s standpoint, the questions asked are the “tip of the iceberg” when it comes to reducing cyber risk.

Cybersecurity Insurance Policy

If you are considering getting a cyber insurance policy, be aware that these policies vary greatly in their coverage, and none of them take away risk entirely.  In contrast to a property/casualty insurance policy, simply filing a claim to replace lost or damaged property is not possible when a cyber attack occurs.  Reputation damage and lost revenue caused by a cyber attack cannot be protected solely with a cyber insurance policy.

Business Action Plan – Cybersecurity Assessment

Why not be proactive about overall cyber risk?  Performing Chortek’s Cybersecurity Assessment on an annual basis not only helps a business answer “yes” to more cyber protection measures on an insurance application (which may result in lower insurance costs), but it provides the basis of an ongoing action plan to reduce cyber risk every year for your business.  Chortek clients who have our help in assessing and planning actions to reduce cyber risk are able to demonstrate to insurers, customers, vendors and employees that cybersecurity is important, and they are taking action to continuously reduce cyber risk.

Contact Michael Senkbeil at 262-522-8248 or msenkbeil@chortek.com for more information.

Written by Michael Senkbeil, MCSE, GCFA, CISSP, CISA | Partner
Posted in Business Advisory, Technology Consulting