Accessing information on the Internet was once likened to searching for information in a library, where the pages of all the books had been ripped out and strewn on the floor. Everyone knows that there is a colossal amount of online information about cyber security issues. How can this seemingly boundless ocean of information be processed for the practical benefit of cyber risk professionals?
This is a daunting multi-disciplinary challenge because cyber risk management spans the broad domains of information technology, risk regulation, law and criminology, security economics, insurance, as well as risk analysis.
This challenge can’t be met by one person – but it can with three. Early in 2017, Andrew Coburn conceived of the idea of a book on cyber risk, with Éireann Leverett and myself as the two other co-authors. Eireann is an ethical hacker, with specialist capabilities and technical insight into the shadowy world of cyber attack and defense. I knew he had special expertise when he showed he could hack my (Samsung) phone in five minutes.
After a brainstorming session in the RMS London office, Andrew came up with the title, Solving Cyber Risk, and after a year and a half of gestation, this book has just been published by Wiley.
Of the many risks that businesses must face, it is now probable that cyber poses the greatest risk for any business – across the globe and across all sectors. Hardly a day passes without another high profile, global business, hitting the headlines with the latest report of a cyberattack, and these incidents are costly. RMS recently estimated that the losses for the Marriott International incident could reach in excess of US$250 million, in an attack that impacted half a billion customers.
Managing the impact of a cyberattack is a complex, lengthy process, and losses occur from a long list of sources. These range from the immediate costs of securing or replacing IT systems, the direct losses occurred by customers or suppliers, all the way through to the “long-tail” losses of litigation such as customer class actions. Perhaps most damaging of all is the loss of reputation as customers feel cheated and violated as their personal details are stolen and sold. Businesses have to try and win back the trust of their customers who may never return.
I invite you to read an excerpt from Solving Cyber Risk, a new book jointly written by Andrew Coburn, Éireann Leverett, and Gordon Woo, which illustrates the origins and the mechanics of an attack, as well as its impact, by examining the Target cyberattack in 2013. The story of the Rescator cyber-hacker team, the perpetrators of a data-theft involving 110 million payment card details from Target customers, is as worthy as any Ocean’s 11 casino-heist. Reading the story, it is hard not to acknowledge the proficiency of this small team of hackers. They identified the vulnerabilities, drew up their target list, circumvented defenses, then through a combination of luck and skill – struck gold, and got clean away from the scene without a trace.