Question

As highlighted in the course outline, you have to submit the second research papers on the cyber loss exposures topic, based on the following questions you can create your own research paper.

As the ransomware (cyber-attacks) incidents are increasing dramatically across all industries in frequency and magnitude, The cyber insurance marketplace is far from saturated but continues to grow slowly due to number of factors.

1. Discuss these factors

2.Define cyber risk and its impact on the organizations

3.How to develop the role of ERM & insurance in managing this risk

4. what do the cyber insurance policies covers.

5.How do the insurer pricing the cyber insurance policies and what is the exposures that effect the price.

Notes to be considered during your working on research, noting that the report equal 10% of your final mark for this course:

1. You can Work in group of two, by your own selection (individual submissions will not be accepted.

2.submit a soft copy of your report via ITC Only, any submitted version via ritaj or academic email will be ignored.

3.Report should only be in English.

4. You can use your own formatting, but you need to stick with it for the whole research.

5.Report should be written in student’s own language as plagiarism and academic integrity are seriously considered. Don’t put yourself in an embarrassing situation.

6. Referencing format: APA (You can find a lot of auto referencing websites on the internet).

Answer 1

Answer 1

Some of the important factors of Cyber Insurance Marketplace:

1. Loss to Business- a business might suffer loss due to data breach or system malfunction issues. Data or Software may be interrupted as a result of which whole business suffers.

2. Breach in Data confidentiality- This is a broad category which can further be divided into two parts such as: a) Loss of own confidential data, such as Financial data, secrets, future plans, intellectual rights etc. ; b) Incidents involving third party data and information damage loss.

3. System issues- this malfunction is sub divided in 4 parts such as:

a. Own system failure- where a company's own systems create system errors or freeze completely.

b. System affected due to malware-here an intrusion of a company's systems is suspected due to the detection of malware or the abnormal behaviour of systems and software.

c. Network failure issue- where a company's systems cannot communicate through internet or other digital network).

d. Human error- there are issues where some inappropriate behaviour or knowledge of a person creates errors.

Answer 2

Technology continues to develop in the global economy is amazing, and sometimes alarming in various ways. Today, our personal relationships, our work schedules and business decisions does not only make use of technological tools, they often rely on them, and this opens the door to intrepid hackers who want to interrupt the functions for economic as well as personal resons. Easy access to reams of sensitive information means more and more organizations are exposed to a range of cyber risks, from data theft and third party information leakage and mis-use of personal informations.

Impact of Cyber risks on organisation:

a. Business interruption or interruption of operations: An internal disruption to the provision of digital services, particularly a core digital service, could lead to an interruption of operations, extra expense and/or lost profits;

b. Data and software loss: A malfunction of a system or software would likely lead to costs for restoring or replacing data and/or software;

c. Product liability or professional services errors and omission (E&O) liability/professional indemnity: Depending on the nature of the companies' business, a system or software malfunction leading to a defect in the company's product or a failure to provide adequate professional services could lead to a liability claim or class action by its customers;

d. Physical asset damage: If the system that malfunctions is involved in controlling the functioning of machinery or equipment (i.e. operational technology), damage to physical assets is possible. Damages to system hardware (whether or not as part of an operational technology failure) would also normally be considered physical asset damage.

Answer 3

Role of ERM & insurance in managing this risk

a. Analysing the risk

b. Choosing proper medium

c. Calculating the cost of loss and cost to insure the loss

d. Building firewalls to protect the risk

e. Review of policies and firewalls at regular intervals

Answer 4

1. Data compromise protection- which includes credit monitoring and services provided by a public-relations firm.

2. Identity recovery protection, which helps victims of identity fraud restore their credit history.

3. Cyber Protection, which protects your business against damage caused by a virus or computer attack, as well as helping with the cost of restoring and recreating data.

Answer 5

It depends on several factors such as:

a. Type of System to be places- big system requires more attention increasing the insurance amount.

b. Type of Data security- Some data are very confidential such as payment gateways, card details, mobile numbers and email addresses, the charge of Insurance will depend on it

c. Term of insurance- The period of insurance will determine the cost of Insurance.

d. Coverage one takes- the cost of insurance depends upon the coverage one takes and type of plan one chooses.