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Always on: preparing for the future of cyber risk

04/11/2024 · 4 minute read

Cybersecurity is essential, but it’s only part of the equation. Here’s why a holistic cyber risk strategy is essential to protect your organisation.

Cybersecurity Awareness Month 2024 urged us to “secure our world,” but doing so requires more than just technical measures. The risks organisations face today are continuous, evolving, and far-reaching, demanding constant vigilance.

While technical defenses – like firewalls, anti-malware systems, and encryption protocols – are essential, cyber risk goes beyond cybersecurity. It encompasses everything from security controls to internal vulnerabilities, organisational readiness and resilience. Yet too few organisations give cyber risk the priority it requires.

As we move beyond Cybersecurity Awareness Month, now is the perfect time to build on its foundations by creating a comprehensive plan that addresses cybersecurity as part of the broader topic of cyber risk – a vital business risk that must be managed with a multi-pronged insurance, mitigation, and resilience approach.

Taking a holistic view

Too often, organisations rely entirely on technical defenses to keep their data safe. For example, a company might have state-of-the-art cybersecurity tools to protect against breaches or system failures, but lack a clear incident response plan that assigns roles and responsibilities for when one happens, leading to avoidable business disruptions. It’s like preparing for a natural disaster – recovery is just as important as prevention.

Effective cyber risk management takes a holistic view, addressing everything from security controls to human behaviour, which may be the weakest link. Human error remains a significant cause of cyber incidents, but it can be reduced with regular internal training and by fostering a culture of cyber awareness. Organisations that broaden their focus are better positioned to mitigate the fallout from a cyber event.

Resilience and response

Managing cyber risk effectively requires a proactive, multi-layered approach. Promoting good cyber hygiene across the organisation is one of the simplest yet most effective measures. This includes basics like multi-factor authentication, secure data storage, and regular updates to software and hardware systems. Training staff to recognise phishing attempts and suspicious activity also plays a key role in preventing breaches.

When adopting new technologies, such as artificial intelligence, organisations must take a long-term view. Too often, vulnerabilities are embedded in systems because security was an afterthought. Involving cybersecurity professionals from the start of a new technology project may help ensure that these tools are integrated into the overall security framework.

Preparedness also means having a robust incident response plan that not only contains damage during a breach or system failure, but ensures the business can recover quickly too. Without proper response strategies, even minor incidents can cause major disruptions.

Seeking expert advice

Given the complexity of cyber risk, many organisations partner with trusted cyber risk advisors for strategic and practical support. Advisors can help identify vulnerabilities, design risk management plans, and prepare incident response strategies.

For less mature organisations, advisors can help establish basic cybersecurity measures and foster a culture of risk awareness. For more advanced companies, a cyber risk advisor can help refine existing strategies. A trusted partner doesn’t just bring expertise, but may act as an external checkpoint to ensure a company’s strategies are robust.

Advisor-client relationships vary. Some organisations retain advisors for ongoing support, while others engage them for specific projects.

Smart risk management

Cyber insurance is a vital layer of protection. It allows organisations to better manage their risk balance sheet, helps with compliance targets, and may provide financial support for breach and other incident remediation.

A good cyber insurance policy can cover everything from business interruption and extortion to risks stemming from key suppliers. The financial impact of a data breach or system failure can be crippling, so insurance helps organisations recover by providing resources that may help rebuild. It gives businesses an extra level of confidence that they are managing potential risks.

It’s also important to tailor insurance policies to an organisation’s specific needs. Policies can be customised to include first-party coverage for immediate response costs and third-party coverage for liability to customers or partners.

Cyber threats don’t follow a calendar, so organisations must adopt an always-on mindset. By continuously refining their risk management strategies, businesses can be better prepared for current and emerging threats.

Cyber risk is not just a technical problem; it’s a business problem. By promoting good cyber hygiene, planning for new technologies responsibly, partnering with trusted advisors, and securing the right insurance, organisations can build a strategy that instills confidence. While the risks are real, potential solutions are within reach. With the right approach, businesses can better secure their world every day of the year.

For more information on how Marsh can help your organisation approach cyber risk holistically, please contact your Marsh representative.

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