Recently I had the opportunity to attend the 3rd Annual Cyber Risk and Privacy Forum hosted by Net Diligence in Philadelphia. The forum was not only informative but also made me aware of a real business opportunity for Reclamere.
It was informative because of all the information that the insurance industry shared about cyber liability and risk. In addition, service providers like Immersion demonstrated to the participants that this world of “cyber-risk” is alive and doing very well. The challenges are not simply about website crashes and lost data. Rather it is about the real threat of organized groups that desire to shut companies down, steal data for future sale or simply domestic terrorism.
The business opportunity for Reclamere is about providing ongoing education to both current and future clients. We all accept the fact that no organization can be 100% secure. Our goal as a trusted adviser and partner is to help our clients develop a security plan that meets a “reasonableness” standard. The standard is what a defendant must be able to demonstrate during litigation. It is no longer enough in the eyes of the court to say “We protect our clients’ data as if it were our own.” Now you must prove that you have policies, procedures, technology and a plan—specifically an Incident Response Plan. There lies the opportunity for Reclamere.
As Timothy Chou of CFO Magazine writes, instead of looking for new tech tools to manage and mitigate IT risk, CFOs should investigate an old, tried-and-true financial instrument: insurance. Organizations must find new ways to transfer that inevitable risk and one option is cyber liability risk insurance.