Cyber risk – Challenges and Financial Implications

Karadjova, Vera and Razmoska, Svetlana (2020) Cyber risk – Challenges and Financial Implications. In: National Scientific Expert Conference with International Participation TRENDS IN BUSINESS 2020.

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In the last 10 years cyber risk has been considered as a major threat to businesses, generating costs
that affect all industries. Businesses have to understand how cyber risk impacts their operations, how
it can be mitigated and determine strategies for managing that kind of risk.
There is a very broad spectrum of potential losses depending on the nature of the business and the
sector in which it operates. Among damages, i.e. losses connected to cyber risk are the following: theft
of intellectual property/commercial sensitive information, business interruption, direct financial loss
(theft of funds or extortion payments), reputational loss, investigation/response cost etc.
The challenge is to mitigate cyber risk/s and consequences/losses arising from it.
As one of the key strategies for transferring cyber risk is insurance, the paper intended to analyze
current situation about using insurance for managing cyber risk. Although for small and medium
companies the insurance premium can be seen as significant cost, it is considered as reasonable
protection from potential losses in the event of cybercrime.

Keywords: cyber risk, risk management, cyber insurance, cyber coverage, financial implications

Item Type: Conference or Workshop Item (Paper)
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Tourism and Hospitality
Depositing User: Prof. d-r Vera Karadjova
Date Deposited: 15 Feb 2021 21:39
Last Modified: 15 Feb 2021 21:39

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