The Expert Podcast

Cyber risk and cyber protection are going to be key in the coming years, regardless of where your company falls on the spectrum of revenue size or number of employees. Here's some data that might be of interest to consider in deciding what steps you're going to take for cyber security or even cyber insurance or cyber liability insurance. This article on TechCrunch talks about how 2023 will be a big year for cyber security, and there are some facts that are of interest. It talks about why there's an increased emphasis on cyber insurance, including supply chain and geopolitical events. However, it's not just for public companies; this may be the same for private companies. Fourteen days after a breach becomes public, the average share price of a company underperforms by three and a half percent on the stock exchange. Even more concerning is that businesses accrue more than 50 percent of damages as long-tail costs. Thirty-one percent of expenses are accrued in the second year, and 24 percent are accrued more than two years after the breach. So just because you've had a cyber breach or security breach, and maybe months or weeks after that breach, you're not out of the woods yet because the cost of these breaches and the expense continues like a domino effect months and even years later. As you're considering putting together your cyber protection profile, whether it's cyber defense, cyber insurance, or a combination of the two, consider that the costs may extend farther than just the immediate event, and you want to have that taken into account when you put together what your plan is for cyber security.