Ransomware has become the new plague to run rampant through the cyber world, rising to the fifth most common malware type and causing the costs of restoring computer systems from such attacks to triple since 2016.
Consequently, Head of BDO International Cybersecurity, Gregory Garrett, warned re/insurers to urgently assess their cyber risk and avoid using a ‘one size fits all’ approach.
Gregory Garrett said an organisation’s cyber insurance policies must be “suited to its particular risks and exposures and is an essential factor in implementing an effective and holistic cyber risk defence programme.
“Cyber insurance directly addresses the financial resources to mitigate attacks but, at BDO, we provide not only financial but also tactical support. It’s less about whether or not to obtain cyber insurance and more about finding the cyber coverage that fits the organisation.
“Proper risk assessment and a good briefing on risk are the necessary preparatory steps to take before talking to a broker.”
According to BDO, level of Board involvement and investments in cybersecurity have increased significantly in the last two to three years, but organisations continue to invest up to four times more on insuring physical company assets rather than cyber insurance.
This shows a lack of understanding or acknowledgement of the true value of cyber assets, and a need for a mindset shift amongst business leadership that reflects the developments and dangers of the cyber world.