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18 september 2017
27 januari 2016
15 februari 2018
Leon Fouche, Partner & National Cybersecurity Lead, BDO Australia
Member of the Global Cybersecurity Leadership Group
Cyber incidents are on the rise. BDO USA’S 2016 BOARD SURVEY, which sought insights from Board members about their cybersecurity practices, found that 22% had reported cyber incidents in the previous two years. The challenge for industry is that, as cyber incidents increase, they will become more difficult – and therefore more expensive - to defend. The same survey found that the average annual cost of cyber breaches was US$4 million.
Organisations are rapidly adopting new technologies and partnering with third parties to conduct critical business processes. This can result in a poor understanding of the risk posture across an organisation – especially an understanding that extends to third parties and essential service providers.
Best practice cyber risk management involves understanding inherent risk measurement, risk mitigation and residual risk management. Increasingly, cyber insurance is being used as a vehicle for transferring part of an organisation’s residual financial and legal risk to insurance cover.
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