The Changing Risk And Liability Landscape For IT Security And Data Risks

Cyberrisks are fast-evolving, posing an ever-changing threat to businesses. According to the annual Allianz Risk Barometer, which surveys more than 1,900 risk experts, cyberrisks have gone from 15th five years ago to now ranking as the second most important peril globally. But some of these risks remain underestimated, and negligence scenarios are increasing. There are now multiple threats to a company’s digital presence. Personal information or intellectual property can be compromised through a data breach, resulting in third party liabilities such as legal or regulatory actions, as well as first-party costs responding to the breach. Businesses can incur network liability if a corrupted file is transferred to another company. Then there are newer perils, such as the threat of cyber extortion, and particularly business interruption (BI), caused by a targeted attack against a company’s computer system.