“Hackers Steal Millions of Customer’s Personal Information”
“New Computer Virus Infects Millions of Computers Worldwide”
You see the headlines all the time.
Hackers, viruses and Trojan worms have the ability to wreak havoc and cause substantial monetary, competitive and emotional damage for every company that conducts business online. The increased prevalence of cyber-security attacks has resulted in skyrocketing cyber-insurance rates. Mitigating any potential losses requires quick detection and a decisive plan of action for a speedy resolution of breaches in security.
In-house cyber security teams are feeling the pinch caused by staff reductions while having to deal with increasingly larger networks and systems. Organizations are coming to realize that security isn’t simply plug-and-play and that merely setting up a firewall or adding intrusion-detection software won’t secure their data from hacking threats. As a result, outsourced managed centralized security solutions are becoming more popular. These security solutions have the ability to standardize, consolidate and analyze security event information succinctly. They do so in real-time through a single centralized hub.
As hacking-related insurance claims rise, insurers are becoming much more thorough when investigating cyber attacks. Insurers are making more effort to ensure their client companies are complying with liability requirements by having adequate security infrastructure. Companies that fail to meet liability requirements won’t be deemed insurable by underwriters. Conversely, companies whose security exceeds requirements may be given a discount on their policy premiums.
According to industry reports, Network Risk insurance premiums range anywhere from $3,000 to $45,000 per $1 million in coverage. Rising insurance premiums will continue to reduce corporate profits unless businesses can demonstrate they have employed all possible security protocols and procedures, including a security audit, to mitigate their liability. Failing to implement these security control measures is analogous to installing a steel door with no locks. An insurance inspection will verify conditions were met, but without a lock the effort is wasted.
Cyber security and auditing organizations ultimately have the same goal of safeguarding sensitive information from unauthorized access. It is imperative for cyber security companies to have the guidance provided by a security audit when setting up firewalls and intrusion detection systems. This will help to ensure security measures are appropriately directed to the most vulnerable areas of the network.
A security audit examines both the condition and management of security systems and provides needed recommendations. Security auditing supplies a clear diagram of security measures and effectiveness, allowing organizations to make the needed changes to prevent attacks. Even if corporations make substantial investments in a host of security products, without an audit it is virtually impossible to obtain a complete picture of the holes in a cyber security system.
There is no substitute for the attentive monitoring of security systems and controls. Substituting expensive network-risk insurance for a thorough security risk management assessment can be suicide for a business. Implementing a dynamic and repeatable security auditing process will aid in minimizing both external and internal security threats, reduce insurance premiums while increasing consumer trust and preserve corporate profits.