Cyber risks and cyber insurance for consultants
Technology has been a transformative force at an exponential rate over the last decade, becoming increasingly innovative, efficient and effective with every passing year.
As businesses embrace these advancements, it has become the backbone of daily operations, enhancing clients experience with the best possible service and products. However, while we admire how traditional business practices have evolved from paper records and filing cabinets to digital documents and laptops, we often overlook the new vulnerabilities this shift creates, which cyber criminals are increasingly exploiting.
AusIMM members in the consultancy space are on the frontline of the mining industry, often utilising extensive and even confidential client data for assessment and reporting purposes. Like many other professions, mining industry consultants are increasingly relying on digital tools like specialised software to take measurements, record observations and generate reports. Communication channels such as emails, file sharing and remote work became increasingly popular thanks to historical COVID-related restrictions. All these forms of communications leave sensitive data shared and discussed via virtual means a real risk. Meanwhile, cyber criminals are becoming more sophisticated, targeting businesses of all sizes and industries. A cyber-criminal can cripple your operations, preventing you from completing your work and serving your clients using the following tactics:
- ransomware attacks, using malicious software to encrypt your files and demand payment for their release;
- phishing and social engineering, using deceptive emails to infiltrate your computers and networks, and impersonation tactics to steal funds; and
- data breaches because of malicious software allowing unauthorised access to sensitive data, leading to reputational harm and potential legal liabilities.
While robust IT security is essential, no system is impenetrable. Cyber insurance provides a crucial safety net when data breaches or attacks inevitably occur, minimising the stress and financial burden of the unknown. A comprehensive cyber insurance policy is specifically designed to help businesses recover from the financial and operational impact of a cyberattack. It can cover a wide range of expenses, including the following:
- 24/7 incident response.
- Immediate access to specialised cyber security professionals trained to isolate and mitigate damage.
- Data recovery. Restoring lost or corrupt files.
- Business Interruption. Covering lost income and expenses during recovery.
- Cyber-related crime. This covers stolen funds.
- Legal and regulatory costs. Defending against lawsuits and regulatory investigations.
Cyber insurance acts as a crucial safety net and should not be seen as a substitute for robust cyber-security practices. For any business, the following measures are just as important:
- Commercial-grade anti-virus software;
- strong passwords and multifactor authentication;
- regular software updates;
- employee training and awareness; and
- regular backup of data.
A cyber-attack can be devastating to your business – but it doesn’t have to be. By taking proactive steps to secure your systems and investing in cyber insurance, you can protect your livelihood and continue to provide the valuable services that the mining industry relies on.