May 20188 The convenience of today's increasingly connected world has brought with it a new form of risk: cyber. With news of large-scale cyber incidents appearing every few days, businesses around the globe are finally starting to sit up and take the subject seriously. If your organization faced an attack today, how prepared would you be? Following the WannaCry ransom ware attack in May 2017, AIG (where I serve as Head of Liabilities and Financial Lines for Greater China, Australasia, and South Korea) experienced an 87 percent increase in submissions for cyber insurance coverage. Businesses around the world are beginning to realize the full-scale enormity of cyber risk. This collective realization is spurring the urgent need for a larger discussion­one that takes place not in IT offices, but in the boardroom. Beyond IT More than 143 million people had their sensitive personal data put at risk by the Equifax data breach in May 2017. That's 143 million personal financial histories potentially compromised. An investigation is ongoing, but the greatest critique lies in a major security flaw the company was first alerted to more than two months before any information was stolen. Following what many considered a lackluster response to the breach, the Chief Information Officer and Chief Security Officer were forced to resign. Consumer and industry backlash also prompted the CEO, Richard F. Smith, to step down. Stakeholders are no longer satisfied with IT taking the brunt of the blame. A cross-border risk Geographical borders are irrelevant in cyber space. In Asia, where 98 percent of the business sector is composed of small and medium-sized organizations, cybersecurity has yet to become a priority. Many of these companies face greater vulnerability to financial, reputational, and client loyalty disasters from risks that may not even be on their radar. CYBER: FACING A NEW FRONTIER OF RISKBY JASON KELLY, HEAD OF LIABILITIES AND FINANCIAL LINES FOR GREATER CHINA, AUSTRALASIA AND S.KOREA, AIGJason KellyLawmakers are responding to this issue and are introducing requirements, which, in practical effect, impose compliance requirements that apply beyond country borders. For example, the EU's General Data Protection Regulation (GDPR), due to come into effect on 25th of May, 2018, imposes obligations on any organization outside of the EU which offers goods and services to individuals in IN MY V EW
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