Cyber security
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Assignment3.pptxCyber Insurance Need - Manufacturing
Assignment 3 – Fall 2022
Business interruption expenses
Data and network restoration expenses
Incident Response
Legal Expenses
Third-party Cyber Liability Regulatory (DAIGREPONT, 2022)
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Key Cyber Insurance Coverage Elements
Above listed are some elements of key cyber insurance and the insurance company will be liable to fulfill all these expenses in case of a cyber crime event. Business interruption costs includes the coverage for costs incurred after a cyber event, including inability to provide services to customers for a period of time due to the attack. the second most important element is incident response including coverage for costs incurred for response and recovery from a data breach. such as Forensics, Iremediation, incident containment, Victim Notification and Credit Monitoring. the third element is legal expenses which Includes costs for standing against a lawsuit to find the criminal behind the cyber crime incident. Apart from these liability, third-party cyber liability regulatory will be paid by the insurance company to fulfill loss of the manufacturing organization (DAIGREPONT, 2022). Third-party cyber liability regulatory provides liability protection for companies who fails to prevent cyber attack and data breaches at a business. These elements important to prevent manufacturing company from losses and financial disruptions. Support of cyber insurance also support companies financially and resource-wise to deal with incident crisis without disrupting business operations.
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In manufacturing sector cyber insurance will cover loss of assets and private insurance of the company.
Cyber insurance should fulfill all the losses a company faced because of inconvenience.
Cyber insurance companies are responsible but the organization’s responsibility matters too.
A long supply chain with interconnected external partners.
Fragmented systems across departments (Miller, 2021).
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Cyber Insurance and Risk Management Alignment
All the elements listed in the previous slide are selected based on the responsibility of an insurance company. cyber insurance assures that the company’s losses will be fulfilled thus it is responsible to pay for all the losses and inconvenience the company will face as a result of a cyber event. Along with the role of cyber insurance to fulfill losses caused by cyber event the organization is responsible as well. It is the responsibility of the manufacturing organization to track processes of the supply chain to ensure transparency and accuracy of procedures. Long supply chains having interconnected partners also poses risks for the organization. The test of accuracy and authenticity of interconnected partners is crucial to avoid cyberattacks. Manufacturing organizations cannot implement a single security system because of the fragmented departmental infrastructure across the organization (Miller, 2021).
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Manufacturing organizations should focus on transparency of internal structure.
30% of cyber attacks comes from employees in manufacturing sector (Miller, 2021).
They use their skills and credential to reach sensitive data.
Intellectual Property IP threat is most common in manufacturing sector.
in manufacturing sector IP is what which differentiates one company from its competitors.
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Cont..
The majority of cyber attacks happens by external actors, about 30% of attacks comes from employees and internal personnel having access to the company’s assets and sensitive resources. Along with external hackers, internal employees also do this because they are financially motivated. Anger or dissatisfaction is another reason which motivates employees to attack the organization.
Internal threat actors do not use different tactics to gain access to company’s network. But, they can use their knowledge, expertise or credentials to access sensitive data. With existing credentials, a threat actor can invisibly carry out a threat without detection. Even former employees of an organization can gain this access if they have passwords or entry methods to avoid the potential of such attacks (Miller, 2021).
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Data protection from unauthorized sources.
Prevention of financial burden as a result of an attack.
Protection of Intellectual Property IP.
Support cyber event response best practices
Improve supply chain processes.
Improve customer confidence (KMRD, 2019).
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Additional Benefits of Cyber Insurance
Along with providing financial support to the organization there are number of other benefits of cyber insurance for organizations. Such as companies data would be protected and tracked by insurance company to avoid unauthorized access and external breaches. Participation in cyber insurance improves transparency of data of manufacturing organizations and keep it private. Intellectual property in manufacturing organizations is most important asset which protects uniqueness of an organization. It is an additional benefit as a result of cyber insurance. The organization would have ability to keep normalcy in its operations and deliver customer’s needs and demands on time. One of the most important additional benefit of cyber insurance is the support it provides to companies after data breaches or cyber crime events. Company’s preparedness to response to a cyber crime event minimizes consequences. This will improve customer confidence and loyalty towards the company (KMRD, 2019). Cyber insurance also provides resources to organization for a good response to the crisis. It strengthens organizational cybersecurity infrastructure for future.
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Manufacturing organization like Toyota are investing huge resources in supply chain.
The cyber attack insurance improves resilience power of an organization.
it protects the organization from the loss of resources.
Helps in crisis management
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Cont..
Manufacturing companies like Toyota have numerous secrets to keep private from its competitors and these secrets differentiates the company from its competitors.Protection of secrets and company’s assets is crucial to maintain competitive advantage in the highly competitive industry. Manufacturing companies like Toyota should protect their supply chain and resources by implementing a strong security infrastructure. Cyber insurance improves company’s resilience against attackers and strengthen its internal security infrastructure. The protection of organizational assets and resources maintains its competitive advantage for long (KMRD, 2019).
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DAIGREPONT, J. (2022, April 26). Key Elements of a Cyber Liability Insurance Policy for Healthcare Providers - Coker. Coker Group. Retrieved October 7, 2022, from https://cokergroup.com/key-elements-of-a-cyber-liability-insurance-policy-for-healthcare-providers/
KMRD. (2019, March 8). Cyber Risk Transfer: Can you transfer cyber risk contractually? KMRD Partners. Retrieved October 7, 2022, from https://kmrdpartners.com/2019/03/08/cyber-risk-transfer/
Miller, J. (2021, July 1). Top 7 Cyber Threats for Manufacturing Companies. BitLyft. Retrieved October 7, 2022, from https://www.bitlyft.com/resources/cyber-threats-manufacturing-companies
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References
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