How GRC software can reduce the cost of cyber insurance
Insurance is about managing risk. The less risk posed by an insured person or property, the lower the cost of insurance.
Take car insurance, for example. Certain safety features included on a vehicle can reduce insurance premiums. Examples, according to CarInsuranceComparison.com, include daytime running lights, anti-lock brakes, air bags, anti-theft devices and drowsy driver warning.
Likewise, cyber insurance helps to manage the risks posed by the growing occurrence of data breaches and cyberattacks. It offers “protection against losses related to cyber-risks, such as data theft/loss, business interruption caused by a computer malfunction or virus, and fines or lost income because of system downtime, network intrusion and/or information security breaches.”
As with car insurance, having certain safety features in place can reduce the cost of cyber insurance while allowing your business to run more efficiently. One example of a “safety feature” for an organization is having Governance, Risk and Compliance (GRC) software installed.
In the same way some cars are equipped with warning systems if drivers swerve from their lane, a GRC platform can notify a company when they are veering toward higher risk and non-compliance. And just as airbags can prevent further damage on impact of a crash, a GRC platform can offer business continuity and disaster recovery plans when disaster strikes.
Cyber insurance is the reassurance you should hope you never need. That’s why cyber insurance should never serve as a cure for weak IT risk and security programs. Companies should re-evaluate IT risk and security as well as any policy changes on an annual basis to ensure adequate coverage.
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While the coronavirus has dominated news cycles, other notable events occurred around a number of new rules, regulations and guidance, from California’s data privacy regulation to NIST data privacy framework and SEC guidance on cybersecurity for financial service firms.
We see a trend that would unify compliance and risk management under the same umbrella and help address the new risk landscape. It’s a principled, ethical approach to governance. Good governance guides organizations to do the right thing.