Managing Cyber Risk

The threat of cyber-attacks is a serious one. A security breach or other attack can seriously damage a business’s electronic infrastructure, reputation, and profits; and any company that digitizes records or other sensitive information faces a certain degree of cyber risk. Fortunately, there are ways to reduce that risk.

 

Potential Problems

 

A cyber-attack can have numerous repercussions. For one, there’s the problem of sensitive information being released; for another, attacks can require you to update or replace an entire system. It can seriously hurt consumer confidence in your business, too—sales can take a sharp drop, requiring a concentrated (and expensive) PR campaign to regain them. In addition, many states and regulatory agencies may fine the business or require them to offer services to those whose information was compromised.

 

Preparation and Security

 

One of the best solutions to preventing cyber-attacks is to ensure that you have strong security protocols in place. It’s a good idea to consult a digital security expert to see if your system is safe enough. No program is perfect, though, and in the event that something does go wrong, you need a good cyber-attack insurance policy. With the right provider, you can get a policy that covers the costs of notifying customers, paying fines, repairing and updating your computer systems, and repairing your reputation.

 

A cyber-attack doesn’t have to mean the end of your company. With adequate security protection in place and the right insurance coverage, you can avoid trouble, recover from attacks, and reduce cyber risk.