01 April 2021

Implications of cyber breaches for company boards of directors

Our Top Cyber Risks for the Board of Directors webinar presented by Robyn Adcock and Michael Herron delivers in-depth insights into the consequences of cyber breaches for affected businesses' executive management.

The costs of sustaining and responding to a cyber breach depend on the industry targeted, with healthcare, energy, finance, pharmaceutical and technology companies heading the list, but the global average is close to $4 million.

A business’s vulnerabilities, or attack surface, may include supply chain or vendor relationships and having staff working remotely from home.

board-members-meeting-cyber-exposures-businesses


Equip yourself and your company with these actionable insights

Our comprehensive webinar covers the factors increasing cyber risk for Australian business and how business executives should respond to meet and mitigate their companies’ exposures.

Register to view the webinar

 

Webinar topics include

Supply chain exposures

A recent Coveware survey of over 1500 global CISOs, CIOs and chief procurement officers found that 77% of companies had limited visibility into their vendors' security and 80% have suffered a third-party related breach in the past 12 months.

Working from home risks

There has also been a proliferation of scams targeting people working remotely, including social engineering and phishing, often exploiting concerns about COVID-19.

What boards need to know about ransomware attacks

Ransomware attacks of are particular concern as they usually combine immobilising operations with demands for extortionate sums of money. The average ransom payment is $233,817 at the first quarter of 2021 and down time for the victim company is 19 days, both substantial increases from the previous year.

Contingent costs of responding to a cyber breach

Whether your business is a victim of ransomware or another type of attack a cyber security breach requires a comprehensive response, and this involves significant costs.

Business exposure to litigation and D&O liability

Cyber breaches bring attendant risks that carry far reaching implications for senior business managers, including litigation in relation to any of the effects of the breach on their own company, business partners, clients and other third parties.

Achieving cyber risk management best practice

For boards to have confidence in their business’s ability to prevent or limit the damaging effects of a cyber breach they need to approach risk management with rigour.

Importance of comprehensive planning for responding to a breach

Having an incident response plan in place enables faster, more effective response to threats.

Using insurance to transfer cyber risks

Insurers are approaching cyber cover with some caution and businesses should be prepared to deal with reduced capacity coverage, increases in premiums for some sectors and greater scrutiny of risk management by underwriters.

Register to view the webinar


Further reading

Beware of malware bypassing or tricking your business anti-virus software

Cyber resilience for survival of full scale attacks against Australian businesses


Gallagher provides insurance, risk management and benefits consulting services for clients in response to both known and unknown risk exposures. When providing analysis and recommendations regarding potential insurance coverage, potential claims and/or operational strategy in response to national emergencies (including health crises), we do so from an insurance and/or risk management perspective, and offer broad information about risk mitigation, loss control strategy and potential claim exposures. We have prepared this commentary and other news alerts for general information purposes only and the material is not intended to be, nor should it be interpreted as, legal or client-specific risk management advice. General insurance descriptions contained herein do not include complete insurance policy definitions, terms and/or conditions, and should not be relied on for coverage interpretation. The information may not include current governmental or insurance developments, is provided without knowledge of the individual recipient’s industry or specific business or coverage circumstances, and in no way reflects or promises to provide insurance coverage outcomes that only insurance carriers’ control.

Gallagher publications may contain links to non-Gallagher websites that are created and controlled by other organisations. We claim no responsibility for the content of any linked website, or any link contained therein. The inclusion of any link does not imply endorsement by Gallagher, as we have no responsibility for information referenced in material owned and controlled by other parties. Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.

Insurance brokerage and related services to be provided by Arthur J. Gallagher & Co (Aus) Limited (ABN 34 005 543 920). Australian Financial Services License (AFSL) No. 238312