Senebria’s Post

It's going to take time for the Crowdstrike incident to unravel.  It was clearly an ICT risk, adding to the complexities insurers and their clients face. We do not live in a world that underwriters understand and can manage.  We haven't for some time.  In hind sight would any insurer have offered a product to Crowdstrike to underwrite the ICT risks that materialised last week?  Would they offer it across global markets? You dont need to be a statisticain to realise that these types of risks, and cyber risk are not 1:100 year long tail risks.  This year alone demonstrates a trend of signoficant digital events. The insurance industry needs to rethink its approach to digital risk.  As we presented to Lloyds of London 2 years ago.  The risk transfer equation has changed significantly,  it's now Left of Bang, not Right. Thaddeus Dziekanowski Brian D. McCarthy Faisal Khan Rachel V. Rose, JD, MBA Ryan Buckner Senebria Veritas GRC #cybersecurity #cyberriskmanagement #cyberinsurance

ICYMI - Assistant Secretary Graham Steele notes US Treasury’s considerations for federal insurance related to catastrophic cyber events. Whether under the existing TRIP authority or another avenue, this is an area to watch for all engaged in cyber risk…and mark your calendars for Apr 2024, “Treasury will host an additional conference during the week of April 22 exploring in more detail some specific ideas about what form such a federal insurance response to catastrophic cyber risk, and/or a public-private partnership or other collaborative mechanism, might take.” #cyber #insurance

It was great sharing my insights in this article feature in Business Insurance! #usioneadvantage #USICyberFederation

"I hired a third party vendor to handle my credit card processing, I shouldn't be held responsible for any data theft." If you are a business owner who believes this statement then I urge you to read this article from our National Cyber Practice Leader. Third Party Risk Management (TPRM) is crucial in determining who your business should be working alongside. "....it is ultimately your customer and your liability or exposure." What does this mean for business owners? Let's look at an example. ABC company, manufactures and distributes carbide/diamond tools. Customers are allowed to go onto ABC companies website to make a purchase, which requires them to provide payment information online. ABC company hired XYZ company to handle all online payment processing. Therefore, XYZ company collects, uses, and stores this data for each transaction. An online hacker finds it difficult to access ABC companies data but finds out that they use XYZ company for processing this information. With a few keystrokes the hacker has identified an easy entry into ALL of XYZ companies stored data. They easily take this data and start distributing it to the highest bidder. The data collected is the responsibility of ABC company, not XYZ company. Due to poor TPRM practices, ABC company failed to confirm cyber coverage for XYZ company which resulted in a financial and reputational loss. Who you choose as your insurance broker matters! If your current broker does not have these type of conversations with you, it is time to consider making a real change and a different approach to protecting your company! #usioneadvantage #manufacturing #cyber

Cybersecurity risk is on the rise, and underwriters are taking notice. According to a recent survey, 56% of underwriters predict a significant increase in cyber risk by 2024. The Woodruff Sawyer 'Cyber Looking Ahead Guide for 2024' sheds light on key insurance market themes that emerged in the past year and provides predictions for the upcoming year.

Great read below about Cyber Liability and Third Party Vendors

Interesting read on best practices to defend your organization from a cyber attack.

One waits to understand the full impact of the Crowdstrike incident and suspect it's going to be way north of the $5.4 billion quoted. For the simple reasons that the incident had a bigger blast radius than Not Petya; impacted more industry sectors, many companies affected weren't insured (99% rule); the time lost to operational outage, and class actions. The insurance industry maybe protected from the incident due to the nature of the event. Unfortunately that comes as cold comfort to the companies affected. What the event demonstrates is the fragility associated with ICT risk. The need for boards to focus on risk management oversight and be prepared for third party risks and incidents. Thaddeus Dziekanowski Brian D. McCarthy Veritas GRC CrowdStrike #cybersecurity #cyberriskmanagement

And #Sbscyber can help you with your vendor risk management. Our #VMaaS product will assess your due diligence and help you understand your supply chain risk. Always happy to help!

Just after the Crowdstrike global outage, the White House is exploring the idea of a federal insurance backstop for catastrophic cyber incidents. This initiative would entail collaboration between the federal government and the insurance industry to create a plan for financially addressing significant cyber attacks. The primary objective is to enhance market certainty and bolster the nation's resilience. Nevertheless, challenges exist, such as more actuarial data to evaluate risks. What do you think about this proposal? #CyberSecurity #Insurance #RiskManagement