While the growth of the information technology sector has given a major boost to the world economy, the corresponding increase in cybercrime is providing a negative counterweight. No organisation can now afford to underinvest in cybersecurity; as the costs associated with losing valuable data, sensitive information, disruption to products and services and consequent loss of reputation, customer loyalty, and corporate value is potentially far greater than the cost of implementing good security systems.
Cyber insurance is also a key element in damage limitation. The importance of taking out adequate cyber insurance is a growing priority for any business with a dependence on the internet – in other words, virtually everyone. Hackers are finding ever more innovative ways to circumvent even the best security protocols. It is therefore important for organisations to have sufficient cover against loss and compensation claims. However, the reluctance of firms to disclose previous cyber breaches or current threats, as well as the complexity of the technology marketplace, make the assessment of individual risk difficult for cyber insurance companies.
Overall, more proactive co-operation across the private and public sectors, coupled to increased legislation and incentives from government, is the best hope for countering cybercrime into the future.
Read more at https://www.whitehouse.gov/articles/fighting-cybersecurity-threats-to-the-growing-economy/