more-arw search

Q&A Forum

Cyber crime on rise, in both media and reality

Every day, in the news and the broad range of industries news (just fill in your industry), Cyber crime is mentioned. As CFO's have you done anything at your companies to better protect them? Or even enquired of your vendors, trading partners, banks, etc. as to what they have done to not only protect themselves, but your firm?

Answers

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

According to Forrester Research, the average cost of a security breach can be as much as $305 per record compromised. Consider that number against the recent JP Morgan Chase Breach of 75 Million Records = $22,875,000,000 OR the recent Anthem breach of 80 million records = $24,400,000,000.

This Risk is evolving. Our CIO has the issue front and center. My role has been to renew our Cyber Insurance (happening now) and consider increasing the coverage level. My recommendation to all is to stay current on all announcements of breeches that are made public, i.e. what hackers are doing and how the government is responding.

There are a few companies out there now that are performing risk assessment and remediation. I am working with one right now – www.spartan3.com.

Topic Expert
Wayne Spivak
Title: President & CFO
Company: SBAConsulting.com
LinkedIn Profile
(President & CFO, SBAConsulting.com) |

There are some articles I've seen (not read) that question whether cyber insurance will be offered in the future.

Sort of like the long term healthcare policies that are slowly disappearing.

Ernie Humphrey CTP
Title: CEO & COO
Company: Treasury Careers
LinkedIn Profile
(CEO & COO, Treasury Careers) |

It is also about having a plan for once a breach happens to mitigate the impact of the breach. A response plan needs to be in place. One poorly managed data breach can bring any company to its knees. I moderated a webinar, Identify and Avoid the Top 5 Data Breach Costs (https://www.proformative.com/events/identify-avoid-top-5-data-breach-costs), that addresses how to develop a response plan to common types of data breaches..

Topic Expert
Regis Quirin
Title: Director of Finance
Company: Gibney Anthony & Flaherty LLP
LinkedIn Profile
(Director of Finance, Gibney Anthony & Flaherty LLP) |

I personally believe Cyber Insurance will always be offered. Yet I have not seen any articles to the contrary. However, I see insurance companies requiring a third-party risk assessment, prior to offering the coverage. Not much different from an insurance company requiring a health assessment, prior to extending Life Insurance.

EMERSON GALFO
Title: CFO
Company: C-Suite Services
LinkedIn Profile
(CFO, C-Suite Services) |

Insurance will take care of the financial aspect of the damage. The reputational risk however is hard to quantify and longer lasting. Mitigation will also require significant capital and personnel investments.

The best thing a CFO can do is GET THE BOARD INVOLVED, INFORMED AND ENGAGED regarding cyber risks and plans. It involves strategy afterall.

1284 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.