Chapter 10 Flashcards
What are the loss exposures under cyber risk?
Deliberate and unauthorized breaches of security in order to access information systems
Unintentional or accidental security breaches, such as losing a memory stick or a laptop
Operational IT risks, such as failing to install firewalls
What are the situations that create a cyber risk for an organization?
A rapidly spreading virus is released on the Internet and infects and organizations system when employee clicks on a link to the site
Employees laptop is stolen
Ransom ware is embedded in the organizations net work
Hackers set up a program to randomly check the organizations network, security and crack employees passwords
Fake email I sent to employees asking them to send the CZEO, all their research on a new technology
An email sent to a company asking to pay a fake invoice 
What are the direct losses that organizations face from cyber risk?
Cost to fix an restore systems, duplicate data, and re-install software
Ransomware or extortion payments
Funds directly, lost due to fraud
Cost to defend and settle lawsuits
What are the indirect losses organizations face from cyber risks?
Extra expenses
Accounting and other professional fees
Loss of competitiveness
Loss of business
Loss of opportunity
What are the two key areas of cyber risk exposures?
Behaviour management-cyber criminals manipulate individuals to open the door into a system by variety of methods. Example phishing send emails with a link, embedding a virus or sending targeted emails
Systems and technology management-technology and systems have weaknesses and cyber criminals can set up programs to detect these weaknesses
What does a Package Policy for cyber risk insurance look like?
Third-party liability
Cybercrime
Extra expense
Business interruption
Crisis management consulting service
What does a standalone cyber risk insurance policy look like?
Set of data resulting in a Privacy breach
Unintentional transmission of a computer virus
Network systems that become unavailable to third parties due to a failure in security
Allegations of copyright or trademark infringement, libel, slander, defamation, or various social media activities
What factors must be considered when recommending cyber insurance?
What security is already in place?
What security needs to be in place?
Where are there cloud account located?
Which risks can be avoided, retained or controlled?
Which risks need to be insured or transferred?
What kind of personal information are being stored?
How many records with sensitive information could be assessed?
Do clients rely on third-party services or provide services to others?
What are the possible outcomes if a data breach is not detected immediately?
Define sharing economy
A collaborative system, where participants share access to services and products rather than owning them individually. Generally facilitated through an online platform.
Define ridesharing
An arrangement set up a means of a website or mobile app in which a passenger travels in a private vehicle driven by owner for free or for a fee
Define car sharing
An arrangement set up by means of a website or mobile app that links renters and car owners sometimes called vehicle sharing or pier to pier car rental service
What are the three periods in which the owners policy does not provide coverage while a driver is logged into an app for ridesharing?
Driver is assessing the app in the vehicle, but has not yet selected a ride
Driver has accepted a ride as driving to pick up the passenger
Driver is carrying the passenger from pick up to drop off
Define transportation network
An online enabled application or website, used by persons to pre-arrange the transportation of passengers for compensation by transportation network driver
What are the five levels of automation?
Level zero no automation
Level one driver assistance
Level two partial automation
Level three condition automation
Level four high automation
Level five full automation
