Page 19 - Risk Management Bulletin April -June 2021

RMAI BULLETIN APRIL TO JUNE 2021

CYBER

INSURANCE - A

RISK TRANSFER

MEASURE

Abstract is the genesis of developmental advancement. We are
now dependent on technology so much that our major
The penetration of the technology in our lives is so time is invested in the gadgets that are the gift of this
much that all our essential working is dependent on technological advancement. Without them our life
technology. The same is true with the banking seems to be dull and void. The penetration of the
sector. Banking has been made simple with the use technology in our lives is so much that all our essential
of technology in all, the domain of traditional working is dependent on technology. The same is true
banking. With the rise of digitization, comes the rise with the banking sector.
in threat of cyber-attacks. In the past few years we
have seen numerous cyber-attacks on corporate as
The banking has been made simple with the use of
well as individuals. So protection of data is the need
technology in all domain of traditional banking. Be it
of the hour. This article touches on the concept of
transaction, deposit, transfer of funds etc. all are
protection of data and introduces Cyber Insurance totally dependent on the effective use of technology.
as a risk transfer measure. With the advantages of being techno friendly we are
W e are all aware of the saying that also vulnerable to certain data theft and be victim of
cybercrime which can put any organization to
necessity is the mother of all inventions.
reputational risk.
The saying in today's context is
somewhat changed. Rather putting it in Now a days there are lot of instances of cyber
the simpler form we would rephrase it as technology
extortion, cyber stalking, and hacking due to which
many advanced nations and corporations are facing
About the author issues in protecting their data intelligentsia. There

have been instances of cyber-attacks on the various
Ashutosh Pande banks in the past where cases siphoning off the money
Union Bank Of India were attempted and our bank was also one of the
STC Bhubaneshwar victims.

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