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What will the future bring for cybersecurity products and services is a question that is front and center. We have recently seen layoffs from several high profile cybersecurity vendors, cyber attacks continue to rise, cyber insurance costs are increasing, exclusion clauses make it harder to claim and cover limits are reduce claims, leaving gaps in coverage.
The cybersecurity market place is awash with new toys, aiming to support clients solve their cyber problems, when more often that not many don’t know the problem they are trying to solve. But things are changing, and for one simple reason, cyber regulation.
Cyber regulation places the regulatory responsibility of cyber risk compliance on the leadership of covered firms in 2 major jurisdictions, the U.S and EU. With Australia moving up behind. Focusing the mind of the ‘C’ suit on clearly articulating, overseeing, assuring and attesting their organizations cyber risks. Cyber risk that is declared to regulators increasing corporate and personal legal and compliance risk. Parallel to which cyber insurance and D&O insurance coverage may become a problem, as it invariable does not cover regulatory breaches. So if a product or services does not ‘Keep me out of jail’, why am I going to buy it?
The second issue security vendors face is that regulation is being introduced in the EU and U.S requiring internet enabled products and services, that includes security product and services, certify their cybersecurity, before they can be distributed and sold. If the product or service is not certified and supported by a security program, then product legal liability will increase.
So yes cyber is becoming less of a money making game for the providers of products and services, its becoming a legal and compliance game. A game that has the potential for high penalties for those that don’t play by the new rule books. Books that are at best complex to understand and at worst have civil and criminal liability attached.
Ted Dziekanowski Rachel V. Rose, JD, MBA Bob Dix
#cybersecurity #cyberriskmanagement #cyberregulation
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