Three Crucial Components for a Cyber Risk Management Plan

Simplify Cyber Security with These Three Essential Steps

No matter the industry, every businesses today should have a cyber security risk management plan. Small and medium-sized businesses are particularly vulnerable to cyber attacks, as they are favored by hackers as “easy targets.”

Luckily, ProWriters can help.

There are three critical components for every successful cyber security risk management plan: prevention, reaction, and recovery. Cyber liability insurance is key to every step of the process. Learn about the components of a successful cyber risk management plan and how ProWriters can make helping your clients easier.

Prevention

When it comes to cyber security, it’s important to be as proactive as possible. Every cyber security risk management plan should have preventative measures to reduce the risk of a serious cyber attack, such as:

Staff Training
A key component of an effective cyber risk management plan is preventive staff training. Many breaches happen because of preventable mistakes made by employees. Cyber criminals are counting on your clients and their employees not being properly trained in cyber security. Every cyber risk management training program should include:

  • Comprehensive training from day one
  • Live drills
  • Periodic evaluations
  • Personal incentives for good cyber hygiene

The right cyber risk management training can make all the difference. Whether or not you clients and their employees are properly trained in cyber security could determine whether or not they will fall victim to the 91% of cyber attacks that start with a phishing email.

Comprehensive Coverage
Insurance used correctly is not only reactive but also proactive. Getting cyber liability insurance proactively is key to a comprehensive cyber security risk management plan. ProWriters and our partner carriers give your clients access to risk management and loss prevention services through cyber insurance solutions designed for optimal risk mitigation. And with ProWriters’ beautifully designed and groundbreaking Cyber IQ Comparative Rate Portal, you can find the perfect coverage in just minutes by comparing policies from the top cyber insurance carriers.

Reaction

cyber security risk management planEven with the best preventative measures, no plan can stop 100% of cyber attacks. That’s why your clients’ cyber security risk management plan will need to have reactive measures in place so they can respond in real-time to a breach and mitigate any potential losses.

Mitigation
60% of data stolen in a breach is taken within the first few hours of the attack. As soon as a business learns it has been breached, it’s crucial to take steps to mitigate the damage. Businesses should have protocols in place to change passwords and lock credentials right away. The faster a business reacts, the better off it will be.

Notification
Virtually every state in the U.S. has adopted notification laws concerning cyber breaches. The Federal Trade Commission (FTC) identifies several parties that will need to be notified in the event of a breach, including:

  • Customers
  • Businesses
  • Local law enforcement
  • The FBI
  • The media

Setting up a call center to handle notifications can quickly get very expensive, and general liability policies often do not cover these costs. ProWriters offers excellent cyber liability insurance designed to cover these 1st party costs for your clients.

Assessment
If your client experiences a breach, they will need to quickly conduct a damage assessment. This involves hiring a forensic IT team to determine what was breached and what may have been stolen. Unlike general liability policies, cyber liability insurance helps cover these costs.

Recovery

Recovering from a cyber breach is one of the most expensive parts of the process. It involves implementing new security measures, adopting stronger encryption and credentials, and rebuilding reputation. Every cyber security risk management plan will need to prepare for the worst and have a recovery plan in place.

One of the most costly parts of the process is the fines, penalties, and potential lawsuits businesses often face after a cyber breach. Cyber liability insurance will cover third party costs associated with these fines and penalties, which can be a lifesaver for affected businesses.

Prevention, reaction, and recovery are the three keys to a successful cyber security risk management plan, and cyber liability insurance is important to every step of the process. To learn how ProWriters can get the optimal coverages for your clients, schedule a call with an expert today.