The Expert Podcast

In case you are wondering, yes, cyber attacks are still rising. We had a huge increase in the number of cyber hacks and ransomware attacks on companies over the last 24 to 30 months, and that's not slowing down at all. According to today's Wall Street Journal, May 13, 2024, cyber risks are still increasing. They surveyed compliance professionals all around the country, and 9 out of 10 said cyber security risk rose, with half saying that midsize companies, those between $50 million and $1 billion, felt cyber threats had increased.

This is pretty much going through the roof, and it's the largest risk companies face. Cyber security is at the top. Regulatory, digitalization, privacy, geopolitical, and financial crime risks are halfway down the list. The supply chain, which was front of mind a couple of years ago, is less than 50%. Employee conduct is a low-risk factor. You can see all of the risks that companies imagine: cyber security at 89%, at the at the top of the list.

So if you're thinking that maybe cyber security and hacking are going to go away, they're not. It's why cyber liability policies are hugely important. They supplement and augment your in-house risk profile. They provide active monitoring, response teams, and access to networks of risk information. Your company is only going to know about the hacks and risks that affect you. If you have a cyber policy, your insurer will keep an eye on the attacks that hit other companies and help you defend against them before they even hit your network.

Be aware that this risk is not going away. In many cases, it's more probable than your building burning down or some type of injury in your factory. It's more likely to happen and could have more financial consequences. So make sure you look at it the same way you would look at any other type of risk and plan for it accordingly, both in prevention, risk mitigation, insurance, and awareness of how to respond should one of these events happen.