Threat actors are increasing the volume and sophistication of cyberattacks on organizations in the agribusiness and food processing sector. Are you prepared?
Aon Advisory Notification
The direct cost associated with a ransomware attack can be staggering. Expenses following a ransomware attack typically include hardware replacement costs, business income loss, and extra costs such as paying employee overtime to mitigate an issue or temporarily migrating IT systems. Litigation expense alone could potentially bankrupt smaller companies.
Potential consequences to cyberattacks on the agribusiness and food processing industry are vast, including supply chain disruption, injury or death to production & processing equipment operators or even, the release of unsafe products that sicken or kill consumers and cause lasting brand damage.
Federal law specifies that companies must establish and implement a food safety system that includes the analysis of all hazards and risk-based preventative controls. Companies cannot undertake these steps without information technology, industrial controls, and internet-based communications.
The law also allows corporate executives to be criminally charged if adulterated food is introduced into commerce. The legal standard for individual criminal liability under the Food Drug and Cosmetic Act (FDCA) is set forth in the United States v. Park, 421 U.S. 658 (1975). The U.S. Supreme Court held that FDCA is a strict liability law with respect to responsible corporate officials, meaning that corporate officials can be liable irrespective of whether he or she had actual knowledge of the violative condition. Companies must consider how a cyberattack could impact process hazard analysis.
How We Help
Aon’s Cyber Solutions practice has been working diligently with our clients in the food industry to address the risks associated with ransomware. As insurance carriers continue to experience mounting losses, they have begun instituting supplemental ransomware applications to determine if their insureds have appropriate security controls in place to combat known ransomware attack vectors. A response to a supplemental question that an insurer views as unfavorable can have a direct adverse effect on client renewal, rate, premium, limit and terms and conditions.
With these dynamics in mind, Aon’s Cyber Solutions has developed two Ransomware bundle offerings, segmented by client need, to directly address clients and insurance carriers’ concerns. The goal of the solutions is to improve client security posture, reducing the likelihood of an incident while better positioning themselves for more favorable underwriting results.
Learn more about how Aon’s Cyber Security Solutions can help your business? Call us +1 212.981.6540