caption: Cyber Security Readiness
Moody’s (link below) have reported that the precautions banks and utilities have in place against cyber threats could affect their credit rating.
With the cost of data theft costing organizations up to $1 billion (see our presentation ‘The real cost of ignoring network security‘), the threat of hacking is becoming a significant factor in assessing credit ratings.
In the Moody’s release, Associate managing Director Jim Hempstead says: “While we do not explicitly incorporate cyber risk as a principal credit factor today, our fundamental credit analysis incorporates numerous stress-testing scenarios, and a cyber event could be the trigger for one of those stress scenarios.”
Picking up on the Moody’s story, the Insurance Information Institute website (link below) adds: “Critical infrastructure sectors such as electric utilities, power plants, or water and sewer systems are more exposed to attacks that could result in large-scale service disruption, causing substantial economic—and possibly environmental—damages to sovereign, state and local governments or utilities.”
Banks and utilities can deter hackers with a daily security audit.
Many banks and utilities think that a bi-annual penetration test is enough to protect their network and fulfil their duty of care to shareholders and customers.
But with over 100 different network threats – such as old software or misconfigured applications – arising during the average week, many companies are turning to a daily vulnerability audit using our Elastic Detector solution as a way of keeping their perimeter secure.
Highlights of Elastic Detector are:
– It can optionally work on clones of servers, so network performance is not degraded.
– The list of security threats is updated on a daily basis, with prioritized reporting.
– SecludIT provides remediation sheets and fix tips. So even non security specialists can implement fixes.
Reference sources for bank and utility credit rating information.
Moody’s: Threat of cyber risk is of growing importance to credit analysis.
Insurance information Institute. Cyber Risk: Impact on Corporate Credit Ratings?