3 ways IMA can help companies combat million-dollar cyber breaches
IMA, Inc. recently sat down with a national retailer to help show company leaders why avoidance isn’t a realistic strategy when establishing your cyber risk policy.
A major national retailer discovered a massive security breach after being contacted by their payment processor of unusual activity – discovering 100,000 unique payment card records were stolen. Unfortunately, the company wasn’t prepared. They lacked a strategy and vendors to respond. They were paralyzed.
The company paid a premium for everything: forensic investigation to determine the cause, legal counsel to navigate their responsibilities, a PR firm to protect their reputation, credit monitoring for affected customers, fines and penalties, and above all else, lost business. Their payment processing was shut down for five weeks forcing employees across the country to manually enter each payment.
The result? Approximately $2.9 million in expenses that may have been covered with insurance solutions.
In today’s world, it is not a question of if, but when, a data security incident will happen. According to McAfee Labs’ 2016 Threats Predictions report, the cyber attack battlefield continues to expand through technologies like wearables, virtualization and the internet of things.
So how could IMA have helped the retailer better respond?
- Probable-loss modeling: IMA can itemize the data you value and then determine a total potential cost.
- A defined incident response plan: IMA can help you establish the process and partners needed for a turnkey breach management solution.
- Breach coaching: It’s a hair-on-fire moment when you realize you’ve been attacked. With cyber risk coverage, you’ll receive immediate access to resources at a discount up to 40 percent, thanks to carrier purchasing power.
What’s the ROI on cyber risk insurance? For this retailer, a nearly $3 million breach may have been covered by a much more palatable premium and deductible. An effective cyber risk management plan could have helped mitigate losses across the business, and it also could have been a financial backstop from the catastrophic event.