Study 5 - Technology and Underwriting

Question 1

Cyber Risk

Answer 1

Any risk of financial loss, disruption of business, or damage to an organization’s reputation due to a failure of its information technology systems

Question 2

Cyber risk falls into 3 general categories

Answer 2

1. Deliberate and unauthorized breaches of security to access information systems for espionage, extortion, or the embarrassment of an organization, such as ransomware to lock businesses out of their system until a ransom is paid, malware including viruses, worms, or spyware, and online phishing scams
2. Unintentional or accidental security breaches, such as losing a memory stick or a laptop
3. Operational IT risks, such as failing to install firewalls, keep security software up to date, or select passwords that are unique and difficult to decode