’Risk managers need to look towards greater preparedness,’ says portfolio manager

Risk managers need to know how to respond to cyber attacks as threats to businesses continue to increase.

That was according to David Warr, cyber portfolio manager at QBE Europe, who said that the ”threat posed by cyber crime to the supply chain is real”.

Research from cyber insurer Cowbell shows that 77% of UK SMEs do not maintain any in-house security, while 32% of chief executives said that they were confident a cyber attack would not impact their ability to do business.

However, Warr said that clients ”want more than an insurance policy”.

”They want advice, support and a range of additional services, which includes sharing data with clients,” he said at the 2024 Airmic Conference.

“In the past, cyber risks were seen as the domain of the IT departments, but it is now firmly on the agenda for the risk managers,” he added.

“Risk managers need to look towards greater preparedness and do all they can to be ready to defend the threat.”

Ransomware

Warr also said that ransomware was one of the key threats firms face.

According to research from Node4, which was published in February, IT decision-makers from the insurance sector said that ransomware was their top cyber security risk for 2024.

“We look to run ransomware scenarios with our clients,” Warr said.

“You can put it all down in writing, but to undergo a realistic scenario allows clients to really understand the impact that such an event can have.

“We continually work with clients around the threats and encourage them to build [up a] muscle memory of how they will need to respond when things go wrong.”