Alvarez & Marsal (A&M) Managing Directors Art Ehuan (Disputes and Investigations) and Rich Moore (Financial Industry Advisory Services), both with expertise in global cyber risk, recently shared their insights during a panel on “Confronting Cyber Risks in an Increasingly Regulated Environment.” The event was co-hosted by A&M and BakerHostetler and featured speaker Jay Kramer, the Cyber Crime Squad Supervisor for the FBI’s New York office.
Following the panel, Art and Rich shared key takeaways:
- Sophisticated and intelligently planned attacks by malicious actors are increasing across all industries, particularly healthcare and financial services.
- It is critical that organizations implement basic security standards, as laid out in frameworks such as those by the National Institute of Standards and Technology (NIST).
- Regulators now expect organizations to take a risk-based approach to cyber, rather than a compliance-based approach (i.e., it is no longer sufficient to “check the box” by providing compliance trainings—companies should have the means to identify and address risk).
- The human element continues to be the biggest contributor to cyber risk.
- Cyber insurance can provide a model for risk transfer and may help inspire a stronger security posture.
- Organizations should consult with their counsel and security experts early to ensure that the appropriate frameworks are in place, as well as when faced with incidents or preparing responses to examinations to ensure appropriate actions are taken.
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