EU & UK Government make a stand against cyber attacks

Cyber-criminal activity has affected many and over the years there has been an increase in cyber claims as cyber criminals become more knowledgeable.

Cyber Insurance is not only insuring data protection and privacy, this is only one aspect of cyber risk. The EU, UK and US are introducing new and upcoming private and public sector initiatives highlighting the need to mitigate cyber risk to prevent business disruption, should a cyber-attack take place.

The EU has announced a Cyber Security Directive which is designed to protect critical infrastructure and is likely to come into effect in 2015 or 2016. Following this Prime Minister David Cameron, has promised a budget of £1.1 billion to tackle “unseen enemies” of cyber-crime and cyber-terrorism. This announcement followed the launch of the UK Government “Cyber Essentials Scheme”, it encourages both small and large businesses to mitigate their cyber risks. Many large companies are now introducing a budget for Cyber liability Insurance in order to become risk adverse.

This latest investment from the UK Government shows that they are acknowledging the fact that they need to improve cyber security and protect national critical infrastructure from cyber-attacks.

It is not just Europe that are being more pro-active and protecting themselves against cyber risks. In the US private sector, large well known bank in Wall street  are proposing a ‘cyber-war council’ to defend against future cyber-attacks following concerns that their systems may not repel or recover from a significant cyber-attack. Some of their concerns are that there could be a cyber-attack on their electrical grids which the financial markets rely on. This could cause a run on banks and widespread panic, leaving the victims reputation in ruins. Although a cyber-attack is not a physical treat the intangible risk could be just as catastrophic.

Whilst it remains to be seen whether these initiatives will be successful in bolstering cyber security, they will at least publicise the risks and the importance of taking appropriate mitigation strategies.

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