The digital age and the increasing risks it brings with it – avoid at great risk
Do you risk streaming the latest ep from a not so good site, or maybe use the free Wi-Fi at the hotel you’re staying at, just because it’s easier? Or do you stop and think about all those people who have nothing better to do than trying to invade your digital world.
The risks today in the digital age are growing by the minute. New viruses, new scams, malware and the dark web selling your details……just to scrape the surface.
Once again, you spend so much time and money on your business, so it makes sense to ensure you do your homework around your IT structure and cyber security to avoid hacking and protect your hard work. How do different risk scenarios affect insurance and more importantly, the day to day running of your business?
You guessed it, this article we would like to talk about your IT and Cyber processes.
There is a great deal to consider in respect to your work and online presence. To name just a few:
- password security
- firewalls and virus/malware protection
- back ups even if using the cloud
- where is your online data stored, is it in Australia?
- do you have to abide by the Australia Privacy Principles?
Why is it so important to be concerned about such processes? This is how it can affect you:
Social engineering - There are hackers out there sitting, watching and waiting to see how best to scam you or your customers out of their hard earned dollars. There are massive companies around the world that are set up just to do this very thing. It’s no longer just a lone wolf in a basement somewhere with nothing better to do.
Ransomware - Do you want someone to hold your data for ransom and having to pay them to have your own information released back to you, or worse still, have to cover the costs to re-create it all?
Civil penalties - You may have to pay out penalties and compensation to third parties whose information has been hacked, you need to ensure you keep personal information safe.
Interruption to your business - If you suffer a cyber event this can have an impact on your turnover; would you be able to carry on with no way of earning an income? Could you pay suppliers or staff, or even yourself to maintain your lifestyle?
Australian Privacy Principles - If you are a business that needs to abide by these principles (an APP entity), there are many requirements around how, where and what data you collect and store. This can lead back to civil penalties if you do not abide by these.
One point to note, many businesses that are considered an APP entity, must abide by the principles but just as important, it is becoming norm that to obtain their license to operate, they actually have to hold a current cyber insurance policy.
Reminder, insurance falls into a small portion of one’s risk matrix and is a treatment. If you look at forming sound processes and policies in this space, this will not only help your business potentially avoid these damaging risks, but also assist to diminish their severity. All of which will help with a cyber insurance policy; greater the defence, better the premiums offered.
The My Insurance Kit team are well connected with several local businesses that can assist you in these areas if you feel you need the help. Just get in touch and we can provide the introduction.
If you would like to discuss your cyber insurance arrangements, get in touch with us at My Insurance Kit and we can work through together.
Are you an APP entity under the Privacy Act? Check:
What are the principles under the Privacy Act; to find out more.
https://www.oaic.gov.au/privacy/australian-privacy-principles/australian-privacy-principles-quick-reference/
Disclaimer: The information provided above is for general information purposes only, and it is not a substitute for professional advice. You should always consider the PDS/Policy wording before making a decision. Coverage may differ based on specific clauses in individual policies. Refer to the for our services and remuneration details.
