Cyber Insurance in Risk Management

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What is the primary purpose of cyber insurance?

To cover losses resulting from cyber attacks (correct)

To improve IT system security

To comply with regulatory requirements

To transfer low risks to a third party

What type of loss is covered under cyber insurance?

Physical damage to IT systems

Financial loss from direct cyber fraud

Reputation damage due to cyber attacks

All of the above (correct)

Why is cyber insurance becoming increasingly important?

Due to the increasing complexity of IT systems

Due to the rising number of cyber attacks and breaches (correct)

Due to the decreasing cost of cyber insurance

Due to the increasing cost of IT systems

What is the main stage in the cyber insurance process?

Implementing security controls to reduce the impact of cyber attacks Signup and view all the answers

What is the role of a cyber insurer in the risk management process?

To assume the risk and provide financial protection Signup and view all the answers

What is covered under 'First Party Losses' in cyber insurance?

Data protection fines and penalties Signup and view all the answers

What is a major challenge in cyber insurance?

Data unavailability on potential losses Signup and view all the answers

Why are some companies refusing cyber insurance?

Because they think their policies already cover cyber risks Signup and view all the answers

What is the median number of days an attacker is discovered on someone's network?

146 days Signup and view all the answers

Why is cyber insurance growing slowly?

Because there are many unanswered questions in the field Signup and view all the answers

What proportion of a company's annual revenue is the cost of setting up cyber insurance for big companies?

1% Signup and view all the answers

Why are attacks originated from foreign agents excluded in policies in cyber insurance?

Because they are often state-sponsored Signup and view all the answers

Match the following cyber insurance aspects with their descriptions:

Risk Transfer = Transfer risk to a 3rd party such as an insurer First Party Losses = Covers data protection fines and penalties, data protection investigation & defence expenses Cyber fraud = Financial loss from direct use of computers to commit theft/fraud of money, property or security Breach of privacy = Cost of IT forensics and notifying affected subjects, fines from regulators Signup and view all the answers

Match the following cyber attacks with their consequences:

Intellectual theft = Loss of value of assets Cyber fraud = Financial loss from direct use of computers to commit theft/fraud of money, property or security Data and software loss = Cost in rebuilding data Breach of privacy = Less transactions from customers due to being viewed as untrusted Signup and view all the answers

Match the following stages with their descriptions in the cyber insurance process:

Request to buy RID2 = A company sends a request to buy cyber insurance Security controls implementation = Cyber insurer would like to know the implementation to reduce the impact of a cyber attack Proposal agreement = Company and cyber insurer reach an agreement on the proposal Loss assessment = Assessing the losses resulted from cyber attacks Signup and view all the answers

Match the following cyber insurance aspects with their descriptions:

Cyber insurance agreement = A company and cyber insurer reach an agreement on the proposal Data breach notifications = Notifying affected subjects in case of a breach Public relation costs = Costs of repairing the company's reputation after a breach Identity theft expenses = Expenses incurred due to identity theft Signup and view all the answers

Match the following cyber insurance aspects with their descriptions:

Data protection fines and penalties = Fines imposed by regulators for data breaches Data protection investigation & defence expenses = Costs of investigating and defending against data breaches Cyber insurance legislation = Legislation that necessitates the existence of cyber insurance Cyber attacks/breaches = Rising number of cyber attacks and breaches Signup and view all the answers

Match the following cyber insurance aspects with their descriptions:

IT systems and networks = Damage to, or loss of information from these systems Cyber insurance = Insurance that covers losses relating to damage to, or loss of information from IT systems and networks Risk management = Fits into the risk transfer category Company = Sends a request to buy cyber insurance Signup and view all the answers

Match the following challenges with their descriptions in the context of cyber insurance:

Data Unavailability = Not enough data on potential losses Difficulty in Quantification = Not knowing how to measure losses associated with cyber attacks Interdependent Attacks = One attack on a system can lead to vulnerability to other systems Powerful Cyber Weapons = Attackers have access to powerful tools to break into systems Signup and view all the answers

Match the following reasons with their explanations for why some companies are refusing cyber insurance:

Orgs believe policies already cover cyber risks = Budget is limited Budget is limited = Companies think they are already covered for cyber risks Cyber insurance is still new = There are many unanswered questions Policies exclude foreign attacks = Attacks originated from foreign agents are excluded Signup and view all the answers

Match the following statistics with their descriptions in the context of cyber insurance:

146 days = Median number of days an attacker is discovered on someone's network 1% of annual revenue = Cost of setting up cyber insurance for big companies Unspecified = Cost of setting up cyber insurance for small companies Signup and view all the answers

Match the following terms with their descriptions in the context of cyber insurance:

Beast called cyber attacks = Cyber attacks can come from any part of the world Cascade Losses = One attack on a system can lead to vulnerability to other systems Security Controls = Measures to prevent or mitigate cyber attacks Threat Sectors = Probability of specified threat or loss Signup and view all the answers

Match the following terms with their descriptions in the context of cyber insurance:

First Party Losses = Not specified in the passage Cascading Losses = One attack on a system can lead to vulnerability to other systems Security Controls = Measures to prevent or mitigate cyber attacks Threat Sectors = Probability of specified threat or loss Signup and view all the answers

Match the following challenges with their impacts on cyber insurance:

Data Unavailability = Impacting premium setting Difficulty in Quantification = Impacting premium setting Interdependent Attacks = Leading to vulnerability to other systems Powerful Cyber Weapons = Making it easier to break into systems Signup and view all the answers

Cyber insurance is agreed upon these ______ stages:

A company Signup and view all the answers

Cyber insurance covers the losses relating to ______ to, or loss of information from, IT systems and networks.

damage Signup and view all the answers

Low risks can be ______ to a 3rd party such as an insurer – Cyber insurance.

Transferred Signup and view all the answers

The main reason for existence of cyber insurance is ______ and the number of rising cyber attacks/breaches.

legislation Signup and view all the answers

Cyber insurance covers ______ and software loss – data have been deleted or corrupted, cost in rebuilding this data.

Data Signup and view all the answers

Cyber insurance covers Data Privacy and Security ______ Party Losses.

First Signup and view all the answers

Not enough data on potential losses that can occur, value of implementing security ______, probability of threat sectors attacking, probability of security controls not addressing threat or specified loss.

controls Signup and view all the answers

The median no. of days of an attacker being discovered on someone’s network is ______ days.

146 Signup and view all the answers

Cyber insurance is growing slowly because some companies are refusing cyber insurance and this is the ______ why.

reason Signup and view all the answers

One attack on a system can lead to ______ to other systems since cyber attacks are interdependent.

vulnerability Signup and view all the answers

Attackers have access to powerful ______ weapons which is not easier to break into a system than before.

cyber Signup and view all the answers

For big companies it doesn’t cost much to set up Cyber Insurance as its ______% of companies annual revenues.

1 Signup and view all the answers

Cyber Insurance in Risk Management

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Questions and Answers

What is the primary purpose of cyber insurance?

What type of loss is covered under cyber insurance?

Why is cyber insurance becoming increasingly important?

What is the main stage in the cyber insurance process?

What is the role of a cyber insurer in the risk management process?

What is covered under 'First Party Losses' in cyber insurance?

What is a major challenge in cyber insurance?

Why are some companies refusing cyber insurance?

What is the median number of days an attacker is discovered on someone's network?

Why is cyber insurance growing slowly?

What proportion of a company's annual revenue is the cost of setting up cyber insurance for big companies?

Why are attacks originated from foreign agents excluded in policies in cyber insurance?

Match the following cyber insurance aspects with their descriptions:

Match the following cyber attacks with their consequences:

Match the following stages with their descriptions in the cyber insurance process:

Match the following cyber insurance aspects with their descriptions:

Match the following cyber insurance aspects with their descriptions:

Match the following cyber insurance aspects with their descriptions:

Match the following challenges with their descriptions in the context of cyber insurance:

Match the following reasons with their explanations for why some companies are refusing cyber insurance:

Match the following statistics with their descriptions in the context of cyber insurance:

Match the following terms with their descriptions in the context of cyber insurance:

Match the following terms with their descriptions in the context of cyber insurance:

Match the following challenges with their impacts on cyber insurance:

Cyber insurance is agreed upon these ______ stages:

Cyber insurance covers the losses relating to ______ to, or loss of information from, IT systems and networks.

Low risks can be ______ to a 3rd party such as an insurer – Cyber insurance.

The main reason for existence of cyber insurance is ______ and the number of rising cyber attacks/breaches.

Cyber insurance covers ______ and software loss – data have been deleted or corrupted, cost in rebuilding this data.

Cyber insurance covers Data Privacy and Security ______ Party Losses.

Not enough data on potential losses that can occur, value of implementing security ______, probability of threat sectors attacking, probability of security controls not addressing threat or specified loss.

The median no. of days of an attacker being discovered on someone’s network is ______ days.

Cyber insurance is growing slowly because some companies are refusing cyber insurance and this is the ______ why.

One attack on a system can lead to ______ to other systems since cyber attacks are interdependent.

Attackers have access to powerful ______ weapons which is not easier to break into a system than before.

For big companies it doesn’t cost much to set up Cyber Insurance as its ______% of companies annual revenues.

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