Cyber becomes third most worrying risk globally

13 March 2017

JLT Specialty has published the latest edition of their monthly cyber newsletter, Cyber Decoder. This issue contains the following articles:

Boards grapple with digital risks: In January, the Chartered Institute of Management Accountants (CIMA) published a report which looked at recent changes to the UK Corporate Governance Code (the Code) and set out best practice approaches on the managing and reporting of risks for boards. According to John Hurrell, Chief Executive of insurance and risk management association Airmic which contributed to the CIMA report, despite increasing levels of awareness the majority of UK companies are “failing to conduct or estimate the financial impact of a cyber-attack”. This article contains guidance on what boards should do in light of the findings from the CIMA report.

Banks targeted by DDoS attacks: In January, various British banks – Lloyds Bank, TSB, Halifax and Bank of Scotland – were targeted in a two-day distributed denial of service (DDoS) attack in which customers experienced disruption of services. A year earlier, HSBC was also hit by a DDoS attack. This article talks about some of the recent cyber-attacks against banks and why banks are turning to cyber insurance in their search for solutions.

Cyber climbs risk rankings: According to Allianz' annual risk survey – Risk Barometer 2017 – in which 1,200 risk experts from more than 50 countries were surveyed, cyber incidents were ranked as the third most worrying risk worldwide. This short article summarises Allianz' findings about cyber risks.

Big rise in ransomware attacks: Ransomware claims handled by Lloyd's insurer Beazley more than quadrupled to 200 incidents in 2016, and the insurer expects the number of claims of this type to double again in 2017. This short article contains information of an analysis of cyber claims by Beazley. It also touches briefly on the legal and ethical considerations of paying ransoms and explains how cyber insurance can assist companies.

Australia passes breach notification rules: This article talks about the bill mandating the reporting of data breaches in Australia and contains guidance on what organisations that would potentially get affected by the new law should do. 

Implications of the GDPR: In this article, Alan Meneghetti and Michael Thompsett of Locke Lord LLP, a member of the JLT Cyber Risk Consortium, explore the administration of fines under the General Data Protection Regulation.

This issue of the newsletter also contains an explanation about the cloud and why cloud computing is considered to be one of the most disruptive forces of the digital age. The newsletter includes some information about vulnerabilities in certain technology products as well.

Please visit the JLT Specialty website, to download the full newsletter.