Page 33 - Insurance Times July 2019

For example, In 2017, Mumbai witnessed 12 major fire In a nutshell, rise in cyber data breaches and increasing
incidences that killed 14 people. adoption of cloud-based services are a few factors driving
the growth of cyber security insurance market, whereas,
Emerging Risks for the future are :-
high costs and low awareness is inhibiting its growth.
Reputational risks to companies-
Need to analyze threats/trends/action on behavior.
What are the Important Areas that Needs to be
Evolve proactive brand related crisis management.
Kept in Mind While Planning for Enterprise Risk
Create responses to social media incidents, initiate Management?
targeted campaigns, create Brand Advocates. Effective management of risks is essential to achieve
company's strategic and operational objectives and goals.
Foster a "Risk Intelligent" culture and training of
employees. The risk management framework encompasses risk

Advancement in cognitive technologies - Artificial management activities integrated with the business
Intelligence and Data Analytics are helping companies to objectives of the organization and forms the base for
manage risks by use of smart machines to detect, predict compliance, monitoring and reporting of those activities.
and prevent risks. The key focus areas for the ERM framework-
Use of sensor enabled devices, to prevent/reduce cyber a) Strategic Risk Assessment & Capital Planning :-
security attacks, improve traceability, facilitate predictive Organization should conduct Strategic Risk Assessment
risk modelling, automate compliance monitoring, and activity for identification, assessment, mitigation,
analyzing customer behavior. monitoring and controlling top risks facing the company
Cloud Computing and Blockchain technologies offer safety on an annual basis and to all the new activities/process
and security to transactions. Companies have to learn how which the company wants to initiate.
to integrate their technologies into their systems and b) Governance :- Organization should be having well-
processes. documented risk management policy approved by the
Board. A risk reporting process has to be there and
What are the Major Challenges in the Cyber implemented to manage risk governance requirements.
Security Space Today? Risk management is considered to be the responsibility
With the growing incidences of cyber attacks, managing of every employee of the organization and the same
cyber space has become a nightmare for CISOs and should be driven by the board.
organizations. It has become necessary to have Cyber Further, an assessment should be carried out to identify
insurance. Asia-Pacific is a very lucrative market for cyber the major risks faced by the company for the ensuing
security insurance companies. The companies in this region year. Detailed mitigation plans should get devised for
are prone to cyber-attacks owing to poor protection against the top risks and should be monitored closely.
cyber-attacks. Though cyber security insurance market is at
c) Risk Universe :- Any organization gets exposed to
nascent stage in this region but it is growing rapidly. In India,
several risks like operational risk, market risk, hazard
the demand for cyber security insurance rose by more than
risk, Strategic risk in its pursuit for achievement of its
50% in 2017 as compared to that with 2016. Around 250
business goals and objectives. The organization should
companies, including banks, bought cyber security
put in place adequate safeguard(s) to mitigate these
insurance in 2017. As of now, the cyber security insurance
risks. In the capital adequacy framework, various risks
premium is INR 200 crore, which is expected to increase to
should get assessed and quantified by allocating capital
INR 400 crore in years to come. Moreover, there is huge
to each risk at the desired level of confidence.
demand of this market from telecom service providers as
well. Enterprise Risk Management should be managed
through tools like Risk Registers, Risk
"Asia-Pacific is a very lucrative market for cyber Control Self-Assessment (RCSA), web
based Incident Reporting, Business
security insurance companies. The companies in this
Continuity Planning, Business Impact
region are prone to cyber-attacks owing to poor Analysis, Information Security
processes and Key Risk Indicators
protection against cyber-attacks"
(KRIs). The risks should get discussed
The Insurance Times, July 2019 33