Along with the tragic losses of life, displacement of people, and political and economic disruption, potential risks to business operations grow during times of conflict, such as that currently transpiring in Ukraine. Organizations concerned about the possibility of cyber operations should pursue an enterprise-wide approach toward cyber resilience, helping to ensure that in the case of a disruption, they can respond more efficiently and effectively.
Cyber Risk: The Emerging Cyber Threat to Industrial Control, a report from Lloyd’s, Guy Carpenter and Cyber Cube Analytics, analyzes the potential for cyber-operation pathways to an industrial target. The potential for physical perils represents a major turning point for the broader cyber (re)insurance ecosystem. Crossing the divide between information technology (IT) and operational technology (OT), along with increases in automation and the sophistication of threat actors, heightens the need for (re)insurers carefully consider how major losses may occur and the potential impacts.
In this video, Guy Carpenter’s Siobhan O’Brien, Leader, Cyber Center of Excellence, International and Global Specialties, gives a brief overview of how a breach of industrial control systems could cause material damage beyond the stand-alone cyber market—including material damage such as property destruction, loss of life or physical injury, or nonphysical damage, such as business interruption.