Framework For Modelling Cyber Insurance Market Essay

The proficiency and efficacy of the cyberspace in its application in accounting, finance, system designs, manufacturing etc., cannot be denied nor neglected. The reality of the twenty-first century is simple; no organization can survive without the adoption and implementation of the mechanism of information technology to their area of business. On the contrary perspective, there are several challenges that are associated with the cyberspace, among which is majorly cyber security. Recently the hackers’ activity has really skyrocketed and has become a major concern for organizations, states and federal governments and even international organizations. Several regulatory schemes are put in place to mitigate the activities of hackers across the globe.

Computers have become much more important and popular to our society in recent decades. The computer’s ability to perform so many tasks speedily and reliably makes it useful for a wide variety of purposes. Therefore much important information is stored on computers. Because people and organisations depend on computers every day for a variety of significant tasks, it is imperative that the systems which are used are protected from loss, damage and misuse. This essay identifies some potential risks to computer systems and software and the safeguards that can be taken to minimise these risks. A computer security risk is defined as any event or action that could cause a loss or damage to computer equipment, software, data and information, or

Cyber security is a fast-growing industry. With more and more persons using connected devices as part of their daily lives, there is an increasing need for security. Not only are individuals in need of cyber security solutions but also corporations and governments are acutely aware of the dangers of hacking. As a result of the need, the cyber security industry is expected to reach $170 billion by 2020 (Morgan 2015). To understand this industry, it is important to know about firm strategy, technology, investment opportunities, supply networks, productions, markets, and government. This paper will present an analysis of these elements as they apply to the cyber security industry.

Some security risks involved with conducting business online are imposters, eavesdroppers and thieves. Also, there are crackers or hackers, which are people who write programs and manipulate technologies to obtain unauthorized access to computers and networks. The elements of computer security are secrecy, integrity and necessity. Secrecy is protecting against unauthorized data disclosure. Integrity is preventing data from being modified by someone who is unauthorized and ensuring that the contents of emails aren’t changed before they get to he recipient. Necessity is preventing data delays or denials. It is important to establish a security policy to protect assets, to define acceptance and unacceptable behavior and to review physical and

Insurance is an arrangement by which a company gives customers financial protection against loss or harm such as theft and illness in return for premium payments. One of the most important ways that external economic factors are affecting insurance industries is by experiencing a slow pattern in the economy. Insurance companies are affected by lower sales and lower rates of returns on their investments. Companies have to sell certain products for which they have the commitment and the

Objective: To find out the risk of customers using bank accounts and provide methods for mitigation of the highest priority residual risk.

As previously stated, cybercrime is a market with exponential growth. Cyber attack written premium growth is expected to rise from $1 billion in 2015 to $5 billion in 2018. Scalable cyber insurance is important, as smaller business will likely increase as their vulnerabilities become more apparent to cyber hackers. However, coverage for the cybercrime market is in its early stages, making underwriting difficult as there is little data to base prices on. Through October 4, 2016, 725 data breaches have occurred, affecting more than 29 million records. Medical and healthcare breaches account for 37% of the breaches and 48% of the records affected. Travelers is positioned well to leverage opportunities during the demand surge of cyber protection among businesses. External cybersecurity risks will be the main driver of the cyber insurance market. External hackers breaking into company databases, adding ransomware and leaking private

The growing risk of cyber attacks has prompted the National Association of Insurance Commissioners (“NAIC”) to adopt new “Cybersecurity Guiding Principles.” The principles are intended to protect consumers by providing the insurance industry with guidelines for protecting client information and identifying risks to data.

Steve Madden has become very dependent on technology. Not only do they have a website for customers but they also rely on technology to forecast, design products and test them, production, and transportation. Currently they maintain $25 million for network security coverage insurance. With online ordering there becomes many risk factors. As they collect and receive confidential information relating to their customers and employees although they believe their informational security and technology systems and strong they do not however have the necessary resources or technology to prevent cyber-attacks. Cyber-attacks can cause Steve Madden many cost, specially relating to experts that will be needed to be

The cost-benefit analysis was developed to build a business case for the use of technology solutions by comparing the net benefit, investment amount, cost effectiveness and return on investment. The analysis considers not only the costs of security controls and expected loss from security hacks, but also takes care of the profits expected from new opportunities. (Kommineni)

Prevalent to the current trend now is the dependency of the society on Information technology and communication systems. Every aspect of human life is one way or the other linked and controlled by information technology tools. The importance of information technology cannot be over emphasized as its unavailability could lead to a form of disaster or the other. Pivotal infrastructures like finance, healthcare, education and security are driven by information technology. However, information technology and its benefits are accompanied by vulnerabilities and risks that can be exploited by people with the necessary technical skills. Individuals like ‘Hackers’ and ‘Cyber Terrorist’ can cause disruption to information systems, commit financial fraud and also attack computers and networks. These attacks and disruptions could result to violence against people and properties. In some cases, death, serious injuries and severe economic loss could occur as a result of these attacks.

Similarly, Bromiley et al. (2015) proposed that companies fully and continuously managed all the risk rather than individual solved them. Accordingly, M&S connected all the risk as whole and analysed risk interdependency.

Safety of information is the most valuable asset in any organization particular those who provide financial service to others. Threats can come from a variety of sources such as human threats, natural disasters and technical threats. By identifying the potential threats to the network, security measure can be taken to combat these threats, eliminate them or reduce the likelihood and impact if they should occur.

In this generation of advance Information Technology, people exchange the information using numerous devices to accomplish their task in routine life. Information which used to be recorded on paper is now taking form of electronic record. Personal Information is now more feasible to access or destruct for the attacker because of weak IT security like virus or attack to the system or network. To protect the privacy, individual should secure their information. However, the only way to determine flaws and recognize threats, weather it is technical or non-technical or any other, is to find vulnerability and perform risk assessments. In this paper, we will discuss the information security risk in the life and solutions to mitigate

In the cyber world, there are many challenges that face all inhabitants. These challenges are more wide ranging every day. All users have to be more vigilant in reducing these challenges. Individuals and groups have to do their due diligence in mitigating these risks.