A recent blog by an IT security tool vendor provided its Top 5 Cyber Security Predictions for 2015. Coming in at #2 was the prediction that 2015 would be the year that Cyber Insurance would gain in popularity citing that Boards and C-Suites are looking to reduce digital risk by offloading it to insurance providers. The blog goes on to say that reduced Cyber insurance premiums would become a new business benefit as companies start to demonstrate proof of having critical security controls in place.
But for the insurance providers it’s about much more than having cyber security controls in place. From their perspective it is about a commitment to a digital risk management (DRM) program with organizational buy-in that enables an organization to understand cybersecurity and risk from a business perspective. DRM requires an understanding an organizations digital risk profile and the ability to leverage to model and monitor relationships between cyber security, critical infrastructure and physical controls, among other things. The most innovative organizations are already moving down this path and these are the organizations that will get the most attention from insurers as they seek reduced premiums.
Cyber Insurance is just one byproduct of a much bigger issue (and a much easier prediction for 2015) – the rise of digital risk management – particularly for large organizations seeking to prioritize and quantify risk as it relates to their business.
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