insights

Cyber insurance can’t stop a data breach

January 11, 2021

Cyber insurance might protect your business financially, but it doesn’t protect your data. You must take tangible steps to defend your business from the risk of an attack or breach in the first place rather than just insure against it.

By understanding your digital risk, and where your vulnerabilities lie, you’ll be better equipped to build a data security strategy that bakes in security as part of your digital transformation.

Transformation secured

Many businesses are undergoing a digital transformation to harness the power of the data they collect, and as part of this, cyber security should be built in at the core.

As part of your digital transformation you will need to understand your enterprise architecture and be aware of the balancing act between how integration can improve your efficiency but also increase your vulnerability.

The companies in your supply chain may well be an ideal inroad to your organisation. Small and medium sized businesses tend to have less-advanced security so cyber criminals target them.

Understanding digital risk

If you suffer a breach, you need to know how it happened and if any of your defences failed. You must also quickly understand what data was compromised and whether it was personal or sensitive and needs to be disclosed for regulatory reasons.

Here, we are seeing data privacy and cyber security collide, becoming what’s known as digital risk. By making the conscious decision to bring cyber and privacy together, and understanding your digital risk profile, you will have the knowledge and resources to respond in one team.

Knowing the true cost

While your cyber insurance might cover your losses after an attack, you’re unlikely to be covered for a data breach if your security or due diligence failed, unless you have a policy explicitly designed to cover data breaches. If personal data was leaked, you’re also likely to face regulatory fines.

The overall cost of an attack stretches much wider than simply the cost of fines from regulators. The time spent investigating and fixing the fault can take weeks out of your year and set you back in your digital transformation efforts. You must also consider customer compensation, reputational damage, loss of business, damaged brand loyalty and reduced share price.

How can we help?

Cyber insurance and complying with data regulation are the first steps in a data security strategy, but you must take real concrete actions to mitigate the risk of a data breach rather than simply carrying out box-ticking exercises.

The 6point6 methodology means we bake in security at every step of development and can apply penetration and red team testing to anticipate a range of potential attacks. By building it right, you can be more confident you’ve secured your data, rather than just insuring against the cost of a breach.

To find out more about the 6point6 methodology and how we could help you, contact us now.

 

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