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Basic Components of Cyber Risk Management

Most organizations are moving to cloud-based or digital storage when it comes to data and client information. Implementing a cyber risk management program to address prevention, crisis management, and insurance coverage becomes even more important when the threat of a cyber data breach may influence your business. , While you may think you’re immune from risk or that these threats would never directly impact your organization, the reality is that most of those businesses who share that same mentality wish that they had put a framework in place beforehand to guard against those exact dangers.

From sensitive financial information to patient data or simple payroll processing, your business is ripe for hackers or viruses to steal your sensitive and valuable data. To help safeguard against cyber threats like these, all employers, including small businesses, are encouraged to establish a cyber risk management program to aid in situational awareness, setting clear expectations, and communicating effectively.

Develop a Response Plan

When developing a response plan, be sure to reiterate the significance of a timely and accurate response. The response plan should include:

  • How the breach occurred
  • The type of information obtained
  • The number of affected individuals
  • Potential resulting risks

Constant communication with clients or customers is imperative to properly manage the crisis. Use these opportunities to let clients know what actions have already been taken, what you are doing now, and what will be done, without disclosing too many details. Focus on making improvements for the future so there is not a repeat situation.

Collaborate as much as possible with your in-house team of risk management subject matter experts, IT department, and general counsel. In the event of a cyber threat or breach, it is crucial everyone knows when to jump into action and is aware of the specific items of which they are fully responsible.

Plan Considerations

Business both large and small may have varying budgets, which may not allow for all aspects of a full cyber breach crisis response plan to be fulfilled. Prioritize risks and responses by evaluating trends, potential impact, and likeliness in terms of a time frame.

Additionally, organizations should work to improve their internal intelligence, including security software and breach prevention. Take this a step further to ensure the right leaders and stakeholders are aware bought in, properly trained/prepared, and ready to engage cross-departmentally to limit the potential business impact.

At the end of the day, being as prepared as possible and ready to act quickly in the event of a cyber crisis, will help to minimize the overall impact to the business. Review these plans regularly and enact drills or dry runs to test reaction time and close any necessary gaps.

Protect Your Data

Your cyber risk management program should include cyber liability insurance (CLI) coverage that fits the needs of the business. CLI is designed to address the risks associated that are not covered by more general business liability coverage. Business coverage levels are dependent upon the type of coverage you require and range of exposure.

To learn more about preparing a cyber risk management program for your business or enabling cyber liability insurance coverage, contact Harbor America. Human resource management can be one of the most time-consuming aspects of running a business. Leave the heavy lifting to us.

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