Managing third party supply chain cyber risk 2024

In this IIL cyber webinar, Cameron Carr, Neil Hare-Brown and Andrea Garcia-Beltran identify the most important cyber risks posed by third-party suppliers to your client’s organisation, the likely impacts and policy response by reference to recent loss events, the breadth of cover as perceived by underwriters and brokers, any anticipated changes in the near future and how clients can mitigate the risk to protect themselves and avoid the events leading to policy notifications.

Description

As the cyber risk landscape evolves, companies are focusing more on the cyber risk presented by their third-party suppliers. There is a greater appreciation that this risk can be harder to control but can introduce unforeseen vulnerabilities into a company’s cyber risk profile. As recent cyber events arising from incidents originating from third-party suppliers illustrate, it is important to understand the nature of third-party supplier risk, the impacts they can cause and how an insurance policy will respond to those cyber events/impacts.

The availability and breadth of coverage can depend on an underwriter’s appetite for the risk as it is understood by the client and mitigated where possible. This emphasises the importance of due diligence of third-party suppliers, proper contractual obligations on them, and protections for the company, along with measures the company can take to its own networks and processes to minimise that external vulnerability.

Learning objectives:

• Understand the risks posed to policyholders through cyber events impacting suppliers
• Review the typical policy response to supply cyber events provided through cyber policies today in the context of recent loss events
• Discuss the arguments relating to the scope of existing cover and how it might be changed in future
• How can your clients mitigate this risk, making them more ‘insurable’ for underwriters and potentially avoid the event

Speakers

• Cameron Carr, Partner, Mullen Coughlin LLC
• Neil Hare-Brown, CEO, Storm Guidance
• Andrea Garcia-Beltran, Head of Cyber Europe, Nirvana Underwriting
• Chair: Charlotte Peniston, International Wholesale Cyber & TMT Leader, WTW