How does your corporate cyber security posture relate to cyber insurance?
Cybersecurity is an essential part of doing business.
Digital transformation, moving to the cloud, hybrid/remote work, and exuberant web services used to make business easier not only allow you to work more efficiently, but, unfortunately, increase the cyber threat landscape. If you don't take the time to secure your company and its data, you could be setting yourself up for a breach that could put your business at risk. Not only will this cost you time and money, but the damage to your reputation can be devastating.
The average data breach incident in 2022 costs the company $4.35 million (and $4.99 million for ones adopting a remote working model) . In Germany, the average data breach cost is $4.85 million.
Enhancing the corporate cybersecurity posture covers a lot of issues:
1. It helps protect your company from attacks that could cost thousands or even millions of dollars in damages and lost revenue.
2. Cybersecurity can improve customer satisfaction by protecting their data and making sure they feel safe about their transactions with you.
3. It can help you pass certifications and improve internal processes, which will help meet regulations requirements.
4. It's a great way to reduce your cyber insurance costs.
And the last point is a rather interesting topic, since improving the cybersecurity of a company does not guarantee 100% protection against data breaches and cyber-related incidents.
What if there's been an intrusion into your system or someone has stolen some of your data? What if hackers want to extort money from your company? The good news is that there are insurance companies that specialize in helping businesses recover after an attack on their systems. These companies offer cyber insurance policies (also called cyber risk insurance or cyber liability insurance) that protect against all kinds of losses related to cybercrime — data theft or damage, extortion attempts by criminals, business interruption, crisis management costs, and even costs of lawsuits.
It's a topic many companies are thinking about, but few are actually putting into practice. And it's not just about protecting your bottom line — it's also about protecting the company’s reputation. Because reputation damage can cost more than a breach itself.
The cost of cyber insurance depends on various factors such as company size and revenue, industry, insurance history, technology, amount and sensitivity of collected data, and, of course, the corporate cybersecurity system.
By implementing cyber threat prevention and management practices a company can significantly reduce its insurance costs. Moreover, it’s preferable to educate employees in cybersecurity, having in-house IT security specialists would be a plus, and the cybersecurity of your partners and third parties with whom you share data should also be taken into account.
One way that companies can reduce their insurance costs is by putting in place a password manager. The password manager makes it possible to centrally and securely store corporate passwords and share them with employees. With the help of administrative functions, you can share certain passwords with certain user groups, as well as control accessibility.
At ALPEIN Software, we provide IT system assessment and pentest services to help our clients meet regulation requirements and pass certifications. We also offer many years of cybersecurity expertise to help them understand the risks they face and how to mitigate those risks effectively. If your company is going to insure against cyber incidents, then we strongly recommend that you first evaluate your IT systems and strengthen them in order to reduce insurance premiums.
If you have any questions or would like to learn more information about how we can help improve your cybersecurity strategy, please contact us today through the contact form on the website!