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Ted Dziekanowski cyber risk management is achieved by focusing on proactive management of risk, ‘Left of Bang’. Cyber insurance as a risk transfer solution focuses on mitigating risk ‘Right of Bang’.
For cyber insurance to be economically viable there has to be a clear demonstration of cyber risk management by those that are being insured. That cyber regulation such as the SEC final rule, EU NIS 2 and DORA also require covered entities demonstrate. Regulation forces cyber risk ‘Left of Bang’ on to the financial statements, following a paradigm similar to the application of Basel Accords for banks. That regulate risk management by proxy through regulatory capital (bigger risk, more capital).
Cyber regulation transfers cyber risk Left of Bang. Covered entities are required to demonstrate the oversight, assurance and attestation of their cyber control effectiveness. Oversight and assurance that the cloud providers can in part provide, alongside shared responsibility. A model we discussed here in February 2023- https://lnkd.in/eM4guVCb
One wonders if the move by Google, and likely move by AWS, will shake up the cyber insurance industry? The insurance industry does not have access to the data the likes of Google or AWS do and finds it hard to innovate.
Brian D. McCarthy George Sawyer Rich Waite, M.Ed. Rachel V. Rose, JD, MBA
Veritas GRC
#cyberinsurance #google #aws #cyberregulation #cyberriskmanagement
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