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23.01.2017
2251
The world is globalizing. Cultures and economies of different countries, as if under the influence of strong mutual gravity, are attracted to each other and diffuse. In 1992, the European Union becomes a single economic space. The USA, Canada and Mexico create the North American Free Trade Area. A flash mob launched on a social network in China is picked up and promoted in Europe. Modern films are released simultaneously in many countries around the world, books are translated and become popular among readers from different parts of the world.
Globalization has become a trend of the 21st century. The positive side of this process is the increase in international trade, the growth in the scale and pace of capital movements, the emergence of real-time 24/7 global financial markets. This has happened largely thanks to modern technologies and the Internet, which have allowed us to overcome distance, borders and time to exchange assets, ideas and scientific innovations. Michio Kaku, an American scientist of Japanese origin, believes that at an average rate of economic growth, terrestrial civilization will, within the next 100 years, transition to the status of a planetary civilization, whose energy consumption can be compared with the energy received by the planet from the Sun.
However, globalization also has negative aspects, one of which is hacker attacks. Cybercrime has long gone beyond borders, lost its nationality and broken language barriers. American energy companies are being attacked by citizens of the Netherlands, Canada and Great Britain, and in recent attacks on strategic Ukrainian facilities, experts note a Russian trace.
There is no longer any need to deploy tanks and mobilize Iskanders. You can gain remote access to the infrastructure of the regional energy company and turn off the power supply in the region for up to 8 hours using social engineering methods, as happened with Prykarpattyaoblenergo on December 23, 2015. Specialized state bodies are fighting cybercrime, uniting in this fight with other organizations and even entire states. A clear example of such cooperation is the arrest of the organizer of the Avalanche cybercrime group in Poltava. Law enforcement officers from 30 countries and representatives of Europol participated in the operation.
In the past few years, the number of cyberattacks on Ukrainian organizations has significantly increased. The hackers' targets are not only state institutions and enterprises, but also the private sector, by hitting which, the attackers expect to undermine the country's financial system or gain monetary benefits. Thus, an example of such an incident was an attack on a Ukrainian bank (the name of which is not disclosed for confidentiality reasons) through the SWIFT system, as reported in the NBU telegram No. 56-0031 / 37708, as a result of which the bank lost $ 10 million. In addition, in its information security report in 2016, Cisco reports that more than half of the surveyed Ukrainian companies were subjected to cyber attacks.
In light of the increase in the number and seriousness of cybercrimes, risk management of organizations is forced to add to its list another danger to business and the state, which was previously ignored. Hacker attacks have become a reality of today, and not episodes of science fiction films. It is necessary to work with these risks and find ways to optimize them. There are three main areas for such purposes: technological security solutions, educational work in the field of counteraction and prevention of cybercrimes, as well as cyber insurance.
In recent years, the cyber insurance tool has become widespread on the international market. And now it is offered by more than 60 insurance companies around the world. However, for the Ukrainian market it is still terra incognita.
The main task of cyber insurance is protection against large-scale hacker attacks. This type of insurance provides a financial recovery mechanism after major losses, helping enterprises return to normal functioning, maintain stability, solvency and reduce losses as a result of interruptions in production.
Cyber insurance has gained its popularity in developed countries due to the understanding that, while implementing the latest solutions in the field of cyber security and conducting constant work with personnel, there is always that 1% risk of system compromise that cannot be predicted and assessed. Actually, at this stage, cyber insurance comes into play, which is characterized by a wide range of coverage and protects companies from financial losses as a result of DDoS attacks, phishing, cyber extortion, infection with malicious software, liability for the storage of confidential information and personal data.
And what is no less important - the coverage includes a break in production and loss of profit as a result of the aforementioned incidents. In addition, insurance companies offer the following additional conditions: reimbursement of costs for investigating cybercrime, anti-crisis PR to restore reputation, costs for defense in court and restoration of IT systems.
At this stage, the Ukrainian insurance market is significantly lagging behind its Western colleagues in the development and implementation of a cyber insurance product. It is also interesting that international players, both brokers and insurance companies, represented in Ukraine, having a ready-made working policy for protection against cyber risks, are in no hurry to offer it to Ukrainian businesses.
There are two points of view on this. The first is that against the background of general economic stagnation, shareholders do not see the prospects and volume of the market that could interest them. The second is that shareholders consider the Ukrainian portfolio to be too high-risk. In any case, whatever opinion the managers and owners of international insurance companies may hold, this suggests that they are cautious and conservative, and often suffer from a high level of bureaucracy in decision-making, and will not soon enter our market with a cyber insurance product.
In such a situation, a fronting scheme may be the solution, according to which a minimum share of the risk (1-2%) is retained by the local insurer, and the other, largest part is transferred to a foreign partner. In turn, such a partner assesses the risk and provides insurance conditions and participates in the settlement of losses. The advantage of this scheme is the fact that the client receives an insurance product that has already been tested and proven in practice, as well as guarantees of the stability of the foreign participant, confirmed, as a rule, by international ratings, such as Standard & Poor's and A. M. Best. This method gives Ukrainian companies a chance to receive professional, high-quality protection in the event of the worst possible and impossible scenarios.
And as cybersecurity experts say, all companies are divided into two parts: those that know they have been hacked, and those that do not yet know they have been hacked.
Source: forbes.net.ua
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