September 6th, 2018

The Role of Cyber Insurance

Posted at 1:00 AM ET

Corporate directors increasingly view cyber insurance as providing more than protection coverage but also as an important component of cyber risk management that can support response and recovery plans, according to the report Cyber Risk Management: Response and Recovery, from Marsh & McLennan’s Global Risk Center and WomenCorporateDirectors.

Implementing a robust analysis can enable organizations to quantify the price of cyber risk, develop effective risk mitigation, transfer and risk financing strategy, and decide if – and how much – cyber insurance to purchase. This allows the board to have a robust conversation on the relationship between risk, reward and the cost of mitigation and can also prompt an evaluation of potential consequences by using statistical modeling to assess different damage scenarios.

Firms should also take advantage of the sophisticated economic models that allow them to effectively assess the likelihood of a cyber-attack. Deploying more advanced risk quantification tools enables clearer decision-making about the role of insurance in cyber risk management.

Read the full report >>

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