Company directors issued with a cyber alert

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A panel of experts from the law, forensic accounting, insurance and government have rung the alarm bells about inadequate cyber risk management in Australian business.

While corporate Australia was digesting a flood of results on one of the busiest days of the current profit reporting season, a panel of experts in Sydney was dissecting the complex array of legal, technical and human behavioural issues surrounding cybersecurity risk management.

He says research conducted by McGrathNicol had found that about 35 per cent of Australian business had been hit by a ransomware attack and 83 per cent had paid a ransom.and the estimated average coverage was about $1.54 million.He says the survey found the average amount a business was willing to pay was about $690,000. But the actual amount paid is closer to $1 million, and he knows of at least one payment exceeding $10 million.

“Even more broadly than that, the directors as a board have a duty to act in the best interests of the company,” she says. Pausey says it is estimated that only about 50 to 60 per cent of corporate Australia has cyber insurance, which he finds strange given the protection it affords at a time of rising incidents of attacks.

“We are starting to see the blurred lines between what state actors and cybercrime groups.” she says.

 

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