Asia Pacific CEOs and CIOs need to get serious about cyber risk management, says AIG Malaysia
KUALA LUMPUR, 4 June 2013 – AIG, one of the world’s leading insurers, today launched the comprehensive cyber insurance solution in Malaysia in response to growing cyber threats. The company also called on CEOs and CIOs to get serious about cyber threats, saying current corporate risk management practices in Malaysia are still in its infancy and need to be developed further to address cyber threats.
AIG AVP of Financial Lines, Ms. Emily Poh said: “Malaysian businesses are unprepared for cyber risks, CEOs and CIOs need to get serious about managing their cyber risks.”
The alarming growth in cyber breaches dominates world headlines today. About 75 per cent of organizations have experienced some form of a cyber incident, yet awareness of cyber risk remains low. Cyber attacks also increased threefold in 2012 when compared to 2011, with 51 per cent of attacks originating from the Asia Pacific region .
The costs of cyber attacks are enormous and growing. Cyber attacks, often in the form of data breaches and network security intrusions, can impact operations, frequently result in lost productivity, legal expenses, third party liabilities, exposed intellectual property, and damage to a firm’s reputation.
“A corporate risk management framework needs to address cyber exposures, yet many risk managers in Malaysia rarely evaluate cyber risk. Companies need to proactively manage cyber risks across the organization, and this priority should be driven from the boardroom,” Ms. Poh said.
Roundtable to discuss cyber security landscape in Malaysia. From L-R:
o Ms. Myla Pilao, Director, Core Technology Marketing, TrendLabs, Trend Micro
o Mr. Paul Subramaniam, Knowledge Management and Training Partner, ZICOlaw
o Mr. Anwer Yusoff, Head, Innovation and Commercialisation, CyberSecurity Malaysia
o Ms. Gigi Cheah, Partner, Intellectual Property and Technology practice, Norton Rose, Singapore / Hong Kong
o Ms. Emily Poh, Assistant Vice President, Financial Lines, AIG
The rise in cyber threats prompted AIG to develop a new specialised insurance product called CyberEdge, a unique and comprehensive cyber coverage solution for Malaysian companies. It provides an insurance solution for cyber liabilities exposure that current commercial insurance policies may not cover.
Launched today, CyberEdge is especially designed to address the consequences of losing corporate information and personal data from cyber threats, and covers companies’ liability arising from breaching data protection laws.
AIG also recently launched the CyberEdge free-to-download mobile app for iPads, a business tool that addresses the demand for improved information on cyber risk and how to respond to it. The application can be downloaded from https://itunes.apple.com/my/app/aig-cyberedge/id596089398 (or search “AIG CyberEdge” on iTunes).
Ms. Soo Wai Har, Senior Vice President, Commercial Lines and Deputy CEO, AIG Malaysia, commented that AIG is pleased to offer businesses Malaysia’s first CyberEdge mobile app for the iPad: “The App features the latest cyber news, real-time information on country-wide data breaches, a breach cost calculator, an events calendar and a glossary of common cyber terms.”
Ms. Soo was of the view that technology trends such as social networking, the proliferation of mobile devices, and cloud computing, will cause the risks to data security to grow. These trends highlight an even greater need for organizations in the country to vigorously protect data.
Ms. Poh who shared Ms. Soo’s sentiment on the importance of data security said, “Managing cyber risk used to be the domain of Information Technology service providers. Now that the consequences of cyber attacks are so far reaching, damaging corporate reputation and strategic business plans, all levels of an organization from the Chairman down, need to take action to protect against cyber threats.”
“Insurance can provide financial protection against cyber risks and CyberEdge helps organizations in Asia strengthen their defenses against cyber threats,” Ms. Poh added.