Risk Management in Industry: The Importance of Cyber ​​Insurance

Risk Management in Industry: The Importance of Cyber ​​Insurance

According to a report from www.security-insider.de,

The current situation in the industry shows that cyber risks are becoming an ever greater threat. The right OT cybersecurity solution is still the best protection against cyberattacks. Nevertheless, cybersecurity insurance is an important part of OT cybersecurity risk management. Cyber ​​insurance is often viewed as a risk transfer strategy, and the OT cybersecurity insurance market is showing rapid growth. Recent attacks have shown a clear shift towards more direct threats, such as: B. Ransom demands, business or reputational damage and physical damage. This leads to increased incidents of Ransomware-as-a-Service (RaaS). Companies that have poor IT or OT cybersecurity could receive less favorable insurance rates or no insurance at all. Insurance companies use various information, such as the amount and type of data processed, OT infrastructure or IT/OT security budgets, to assess companies' cybersecurity risks. 
The question of how to respond to catastrophic cybersecurity disasters is also one of the biggest challenges for OT cybersecurity insurance companies. Government-backed reinsurance could be possible, according to the U.S. Federal Reserve's analysis report. CSC will be the solution. A better understanding of the true risks of OT attacks, as well as clear OT cybersecurity requirements and a proactive approach to managing OT systems are critical to reducing cyber risks.

It is important that companies better understand the dangers of OT attacks and formulate and implement effective measures and technical solutions accordingly. Clear OT cybersecurity fundamentals, proactive OT system management methodologies, and data consolidation strategies play an important role in this process. Insurance companies can support companies that can implement and demonstrate these measures.