International broker and risk management firm Integro Insurance Brokers has started a new cyber risk practice focused on exposures beyond the commonly accepted definition of data or ‘knowledge assets.’
According to James Sheehan, Cyber Risk practice leader, the exposure created by the retention and creation of data is far broader than prevailing industry thinking suggests.
Knowledge assets include intellectual property, trade secrets, contact information and customer lists, among others.
“Data at an enterprise level also should include these ‘knowledge assets’ or crown jewels — the high-value information that differentiates a firm from its competitors,” Sheehan said.
Losses associated with knowledge assets can damage a company’s brand or competitive position rather than its customers.
“We believe risk managers should identify the company’s most valuable knowledge assets by evaluating security vulnerabilities and then adopting reasonable and necessary policies, procedures and protocols to secure the ‘crown jewels’ and ultimately shift the risk of catastrophic loss to insurance counterparties,” said Chuck Shay, Integro’s US Management Risk practice leader.
Integro’s new Cyber Risk practice includes transactional information, as well as access to third-party readiness and preventative services. It’s CROWN JEWELS assessment looks at issues created by cyber exposures in business segments across all geographies. Knowledge areas include network security, privacy liability and technology E&O.
According to a recent Kilpatrick Townsend and Ponemon Institute study, “The Cybersecurity Risk to Knowledge Assets,” cyber theft can be a widespread and often overlooked threat:
- 74 percent of respondents say it’s likely their company failed to detect a data breach involving the loss or theft of knowledge assets
- 72 percent of respondents do not believe their company has an effective protection system
- 70 percent of respondents say their company does not have cyber insurance
- 67 percent of respondents believe “Third party access to our company’s knowledge assets poses a serious risk”
- 60 percent of respondents say it’s likely elements of their company’s knowledge assets are now in the hands of competitors
- 33 percent of respondents say their company carefully vets its cloud providers
- 31 percent of respondents say their company has a classification system that segments information assets based on value or priority to the organization
- 31 percent of respondents say senior management at their company makes the protection of knowledge assets a priority
- 28 percent of respondents rate the ability of their companies to mitigate loss or theft of knowledge assets as effective.
Pertaining most directly to insurance coverage, the maximum loss for a material data breach of knowledge assets is put at more than $100 million by almost 70 percent of respondents, and at more than $250 million by almost 50 percent of respondents, and almost 60 percent of respondents think a material breach of knowledge assets would impact the company’s ability to continue as a going concern.
Integro is an international insurance brokerage and risk management firm. Launched in 2005, Integro and its family of specialty insurance and reinsurance companies operate from offices in the United States, Bermuda, Canada, and the United Kingdom.
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