Insurance and Pension Executive Brief Fall 2013
Cyber Risk: Top Agenda For The Boardroom!
As the White House, the SEC and other regulators ramp up their focus on cyber security, a key question being asked in the boardrooms of major companies is "What are we doing to protect our information assets and are we doing enough?"
Answers to those questions may be suggested in surveys conducted in 2012 and 2013 by FTI Consulting and Corporate Board Member magazine. In those surveys, a third of general counsels "believe their board is not effective at managing cyber risk." This could be problematic since cyber risk is increasing dramatically, driven by three major factors − more data is being transacted and stored by exponential proportions, the data is more valuable, and the bad guys are demonstrating more persistence in their effort to obtain or infiltrate that data and related systems.
Furthermore, the recent summit between President Barack Obama and Chinese President Xi Jinping, underscored that cybercrime exists on a global scale, involving state-sponsored actors and organized criminals using advanced persistent techniques to gain access to valuable information assets.
In addition, companies face significant cyber risk from events such as opportunistic theft or sabotage by insiders, denial of services attacks, malware, viruses, hardware and software errors or failures, and network overloads or failures, many of which are triggered by events such as major accidents or weather catastrophes.