Cyberattack on June 27, 2017, together with the Petya ransomware virus.A showed the business that the jokes are over. On this day, companies lost 8 billion US dollars, 12,500 computers were affected. And this is only official data. A choice was made: either companies are starting to take a serious approach to the issue of cybersecurity, regardless of the sphere. Or, together with the auditors, there will be a calculation of losses and indefinite vacations for employees. And then the companies face a task. If managers vote in favor of cybersecurity, then how to approach its construction correctly, what does it consist of and where to start?
The British insurance corporation Lloyd’s estimated the total damage to enterprises worldwide from cyber attacks at $400 billion a year! So it is not at all surprising that the market for cyber insurance premiums in the world is growing by leaps and bounds: this year, according to forecasts, it will amount to $4.3 billion, and by 2020 it will grow to $7.5 billion (data: PwC, Lloyds, BT Intelligence).
PROTECTION FROM 5 NON—OBVIOUS CONSEQUENCES OF CYBER ATTACKS
The main task of cyber insurance for business IT in Los Angeles is to keep the business afloat and provide financial support in the worst-case scenario after a cyber attack. Having become a victim of a cyber incident, companies in Los Angeles incur many different losses and unforeseen expenses.
- Break in production. Idle business, for example, an online store can be very expensive for its owners.
- Responding to a cyber incident. As with a fire, with a cyberattack, you can’t leave everything as it is, it must be eliminated. For this purpose, cybersecurity specialists in Los Angeles are involved for operational intervention and suspension of the attack.
- Lost electronic data. For example, for a business that works with retail, the loss of the customer base will be a very significant blow. In addition, its restoration (if at all possible) requires certain costs, both monetary and temporary.
- Claims of third parties. If an audit company in Los Angeles has been subjected to a cyberattack and confidential data of its client has leaked into the network, it is likely that the auditor will expect a lawsuit with all the costs that follow: lawyers, court costs, fines, etc.
- Reputational damage. When information leaks into the network that a successful cyberattack has been organized on the bank, confusion and concern about the safety of their money and accounts often occur among its customers. After such news, the bank loses not only existing customers, but also future ones. And in order to restore its reputation, the bank will have to attract serious budgets and the best PR specialists.
This is not a complete list of what a company In Los Angeles affected by a cyber incident may face. Cyber insurance for Business IT in Los Angeles as a type of risk management is becoming, in a sense, a superstar in the global financial market. The industry shows annual growth close to the growth of Silicon Valley startups. And not because it is a “hype”. But because it is a truly effective mechanism for minimizing the risks of companies in cyberspace. Cyber insurance is a full—fledged cybersecurity strategy tool at the enterprise, which goes hand-in-hand with technological, operational and educational measures aimed at protecting the company In Los Angeles from cyber risks.