How Nordic Leaders can strengthen their organization’s cyber security
ArticleDecember 16, 2024
The increasing pace of digital transformation, the move to the cloud, as well as the emergence of new technologies and remote working are all reasons why businesses are more vulnerable than ever before to cybercriminals. Nordic leaders need to make sure their companies are protected by a multi-faceted approach which includes involving the public sector. In this article Zurich Nordic’s expert Edvard Silén shares his insights.
The World Economic Forum’s Global Risks Report 2024 highlights that nearly 40 percent of experts consider cyberattacks a paramount risk capable of triggering a material crisis. This concern is not unfounded, as the global cost of cybercrime is projected to escalate from USD 8.5 trillion in 2022 to nearly USD 24 trillion by 2027.
As cyber threats increase, there are solutions to help businesses guard against the risks. Companies need insurance and having risk mitigation solutions in place. Thirdly the private and public sector needs to collaborate.
Cyber Insurance
Businesses of all sizes are vulnerable to cyber threats and having adequate insurance protection provides them with access to specialized resources, including legal and technical expertise, to navigate the aftermath of a cyber incident. As regulatory requirements around data protection become more stringent, having cyber insurance ensures compliance and avoids hefty fines. The reputational damage resulting from a cyber attack can be devastating, and cyber insurance aids in managing public relations and restoring customer trust.
Moreover, policies often include coverage for business interruption, helping companies recover lost income and maintain operations during a crisis. The costs of forensic investigations to determine the cause and extent of a breach can be substantial, and cyber insurance can cover these expenses.
Strengthening Cyber Resilience
The best cyber incidents are those that never happen in the first place. Involving risk engineers at an early stage can help businesses to spot threats and bolster their defences. Cybersecurity should be integrated into strategic planning building awareness to threats.
Zurich Resilience Solutions offer many tools that can help mitigate cyber risks. These involve realistic and systematic on-site and remote protection training, in-depth qualitative risk assessment and quantitative exposure calculation, penetration testing (ethical hacking), next-generation antiviruses and much more.
Collaboration
If the rapid and extensive growth of cyber threats continues, it will surpass the capacity of conventional insurance and risk management strategies to effectively mitigate them. Already today, there is a cyber protection gap and some risks are deemed uninsurable. Therefore, collaboration is needed where both the private and the public sector are involved.
Secondly, addressing quantifiable catastrophic cyber risks is vital. Organizations should develop clear plans for handling cyberattacks and ensure these plans are regularly updated. Collaborating with other organizations, officials, and sharing information through networks and forums can build a collective defence.
The cybersecurity challenge is an urgent issue that requires immediate attention and action. By closing the gap in cyber measures and resilience, companies can ensure that risks remain insurable and losses are minimized. Leaders in the Nordics and beyond must prioritize cybersecurity, invest in strategic planning, and collaborate with others to build a robust defence against ever-evolving cyber threats.
For more information on how Zurich can help to protect your business against cyber threats, please contact Edvard Silén, Underwriter Financial Lines.