When a data breach or other cyber event occurs, the damages can be significant, often resulting in lawsuits, fines and serious financial losses. Cyber exposures impact businesses of all sizes, therefore corporate Boards must play an active role in prevention plans.
To help oversee their organization's cyber risk management, Boards should ask the following questions:
1. Does the organization utilize technology to prevent data breaches?
2. Has the Board or the company's management team identified a senior member to be responsible for organizational cyber security preparedness?
3. Does the organization have a comprehensive cyber security program? Does it include specific policies and procedures?
4. Does the organization have a breach response plan in place?
5. Has the organization discussed and formalized a cyber risk budget? How engaged is the Board in terms of providing guidance related to cyber exposures?
6. Has the management team provided adequate employee training to ensure sensitive data is handled correctly?
7. Has management taken the appropriate steps to reduce cyber risks when working with third parties?
8. Does the organization have a system in place for staying current on cyber trends, new, and federal, state, industry and international data security regulations?
9. Has the organization conducted a thorough risk assessment? Has the organization purchased or considered purchasing cyber liability insurance?
Asking these questions now can help prevent problems in the future.
Contact Carriage Trade Insurance if you have any questions about your Business or Cyber Liability coverage.