May 27, 2014, Rick Dakin, CEO, Co-founder and Chief Security Strategist
Across the country, executives and their boards saw the data breaches that occurred at large, well-run retailers and immediately began asking the right questions about their own systems and protections. The challenge for the insurance industry is that the plan for many of these companies seems to be transferring as much risk as possible to insurers, who may not have a full and complete understanding of what they are covering.
Cyber insurance has already experienced significant growth. Last year, the take rates on dedicated cyber policies and critical infrastructure policies increased by 20 percent and 40 percent, respectively. Companies operating in transaction-dependent businesses as well as those providing critical infrastructure understand that a cyber-attack could cause unrecoverable loss unless cyber insurance is obtained.
However, many companies struggle with specifying the types and form of coverage needed and the extent that risk has been mitigated through security programs to help negotiate a justified rate for coverage of the residual risk.
Insurers are writing policies to cover losses due to cybercrime without obtaining full transparency of the cyber risks facing the companies they insure. The lack of risk data provided by insured companies combined with the limited loss expectancy data available to the underwriters creates uncertainty. This is partially reflected in the price spreads between insurers for equivalent policies, but the industry as a whole is operating in an environment of information opacity.
Correctly pricing cyber risk is difficult for a number of reasons. Two decades ago, the product didn’t even exist. There’s no way to know right now what the cyber equivalent of a 100-year storm will be.
Non-disclosure is another significant challenge. There remains no national standard for data breach notifications. Given the serious public relations and sales repercussions that come with publicly disclosing security issues, many companies won’t mention them unless they are required to do so by state law.
On the auditing side, the lessons from Enron have not yet made it to cyber risk management. The companies assessing compliance with many industry requirements – such as the Payment Card Industry (PCI) Data Security Standard – are the same ones that provide the security services. The level of conflict between the advisors and auditors is high and very little guidance is provided to establish reliable and independent assessments for the governance groups.
As insurance carriers increase their exposure in this area, they should look to their own independent auditors to determine the true risks their customers are facing. With cyber-attacks increasing rapidly in sophistication and intensity, there will be no shortage of companies looking to offload those risks. It will be up to insurance providers to protect themselves when the inevitable “Big One” hits.
Get more information about Coalfire’s security assessment services.
Rick Dakin — CEO, Co-founder and Chief Security Strategist
Coalfire started in 2001 with a simple idea – cyber threats are increasing, compliance mandates are getting more complicated, and a well-designed cybersecurity program can help fuel your overall success.
Coalfire helps organizations comply with global financial, government, industry and healthcare mandates while helping build the IT infrastructure and security systems that will protect their business from security breaches and data theft. The company is a leading provider of IT advisory services for security in retail, payments, healthcare, financial services, higher education, hospitality, government and utilities.
The Coalfire Board of Directors provides invaluable guidance for the organization and reflects Coalfire’s dedication to achieving success for our customers.
The Executive Team is comprised of experienced senior leaders who oversee Coalfire’s key business units. Larry Jones, shown right, served as Chairman of the Board of Coalfire since 2012 and became CEO in 2015.
With a passion for quality, Coalfire uses a process-driven quality approach to improve the customer experience and deliver unparalleled results.
Created in honor of the late co-founder of Coalfire, the Richard E. Dakin Fund at The Denver Foundation is supporting scholarship programs at several universities for promising college students studying cybersecurity and related fields.
Security is a team game. If your organization values both independence and security, perhaps we should become partners.
The increased need for cyber security has become a common enterprise priority across the globe. However, industry requirements for effective cyber risk management are as distinct as the individual entities under fire. Enterprises and government organizations need more than an off-the-shelf audit to provide an effective threat assessment. They need industry- and organization-specific insights, tools and processes to protect digital assets and ensure compliance.
Coalfire can help cloud service providers prioritize the cyber risks to the company, and find the right cyber risk management and compliance efforts that keeps customer data secure, and helps differentiate products.
“Success” at a government entity looks different than at a commercial organization. Create cybersecurity solutions to support your mission goals with a team that understands your unique requirements.
The financial services industry was built upon security and privacy. As cyber-attacks become more sophisticated, a strong vault and a guard at the door won’t offer any protection against phishing, DDoS attacks and IT infrastructure breaches.
The continuum of care is a concept involving an integrated system of care that guides and tracks patients over time through a comprehensive array of health services spanning all levels of care. Interoperability is the central idea to this care continuum making it possible to have the right information at the right time for the right people to make the right decisions.
Maintaining network and data security in any large organization is a major challenge for information systems departments. However, in the higher education environment, the protection of IT assets and sensitive information must be balanced with the need for ‘openness’ and academic freedom; making this a more difficult and complex task.
When it comes to cyber threats, the hospitality industry is not a friendly place. Hotels and resorts have proven to be a favorite target for cyber criminals who are looking for high transaction volume, large databases and low barriers to entry.
The payments industry is undergoing rapid changes and unfortunately, an increasing risk for data breaches. Cyber criminals are growing increasingly businesslike, and payments leaders need to move quickly to cover their cyber risk.
The food and beverage industry is under attack from cyber criminals intent on stealing payment information. The food and beverage industry makes up the highest percentage of breach investigations, at nearly 73 percent, according to Visa.
The global retail industry has become the top target for cyber terrorists, and the impact of this onslaught has been staggering to merchants. To secure the complex IT infrastructure of a retail environment, merchants must embrace enterprise-wide cyber risk management practices that reduces risk, minimizes costs and provides security to their customers and their bottom line.
Private enterprises serving government and state agencies need to be upheld to the same information management practices and standards as the organizations they serve. Coalfire has over 16 years of experience helping companies navigate increasing complex governance and risk standards for public institutions and their IT vendors.
Technology innovations are enabling new methods for corporations and governments to operate and driving changes in consumer behavior. The companies delivering these technology products are facilitating business transformation that provides new operating models, increased efficiency and engagement with consumers as businesses seek a competitive advantage.
Cybersecurity has entered the list of the top five concerns for U.S. electric utilities, and with good reason. According to the Department of Homeland Security, attacks on the utilities industry are rising "at an alarming rate."
Cyber risk management, advisory, technology and compliance services. Manage risk and maximize return on investment to prevent data breaches and theft. Coalfire’s solutions are led by a team of industry experts that help enterprise organizations understand a wide range of compliance and risk management initiatives, which enables a consistent cybersecurity framework across the organization.
Expert assessments that provide an accurate understanding of what you are trying to protect, the inherent and residual cyber risk to your enterprise and the maturity of the your security program and underlying controls
Customized services to help CISOs and Senior Management develop cybersecurity strategy, implement controls, and govern a security program
Cybersecurity assurance services provided on a co-sourced basis to internal audit departments, or via independent audits commissioned directly by the board of directors or senior management
Adopt a proactive approach to cybersecurity
Make more informed security-related decisions
Design, engineer, and scale with confidence
Certification and Accreditation (C&A) process for DoD
Get FedRAMP authorized with the leading 3PAO
Reducing Financial IT Security Risk
Meet your FISMA authorization needs
General Data Protection Regulation
Health data protection for all shapes and sizes
The most rigorous approach to meeting HIPAA requirements
An internationally recognized approach to information security
ITAR, EAR, and DFARS Advisory and Assessment
Cyber security for electric grid critical infrastructure
Protect Controlled Unclassified Information for Nonfederal
Payment Application Security Validation
PCI Data Security Standard Compliance
Establish and report controls to differentiate your organization
Malware and Vulnerability Research, Open Source Tools, and Opinions
Understand vulnerabilities and implement remediation before they’re exploited
Obtain, preserve, and examine digital evidence
Protect sensitive information systems with regular check ups
Secure the design, development, and deployment of your applications
Test your organization’s defense against a simulated real-world attack
Employ solutions for prevention and recovery
Hands-on experience with the application of real world techniques
Secure physical and digital IoT solutions with advisory, assessment and technical testing for makers, operators and users to empower the way we live and work.
Control your Compliance
Easily identify IT vulnerabilities
Streamlining PCI Compliance