What is Risk Transfer?
What cyber risk are you willing to retain? Despite best efforts, residual cyber risk will always remain. These risks can lead to third-party cyber liability, productivity loss, loss of sales, and supply chain disruption. To better manage this risk, organizations should adopt a cyber risk transfer strategy.
Cyber risk transfer helps organizations mitigate the effects of a cyber event by providing more meaningful balance sheet protection and alleviating issues arising from income loss. Best-in-class cyber risk transfer solutions can give you more access to a global pool of capital, cyber insurance, alternative risk transfer options, and innovative cyber reinsurance strategies.
When Should You Choose Transfer?
Cyber risk transfer is a cornerstone of any holistic cyber risk management strategy. Companies frequently elect Transfer following a cyber risk assessment which often reveals higher-than-expected cyber risk exposure from network security vulnerabilities that have proved challenging to mitigate. This assessment can reveal balance sheet exposure that exceeds the board's tolerance.
What are Common Transfer Methodologies?
Every client has different business imperatives, and similar companies can vary considerably, primarily around cyber risk tolerance. Your cyber risk transfer team will take time to understand your business, risk posture, cyber maturity, and priorities. We leverage our international network and Global Broking Centers to help clients transfer the risk and secure capital on a geographically agnostic basis. Cyber risk transfer goes beyond the traditional to explore alternative options, for example, utilization of alternative risk incubation options, including captives or cells. We can also assess and advise on an organization’s cyber readiness before approaching the cyber insurance market by better identifying and drawing out the data required to secure quality risk transfer solutions and assist with technical wording construction and consideration of appropriate reinsurance solutions.
Aon will scope all recommendations according to our Return on Security Investment (ROSI) model.
How Aon Can Help
Aon’s risk management model of Identify, Assess, Mitigate, Transfer, and Recover can be entered at any point to achieve company-wide cyber resilience at scale and be better positioned for insurability and business continuity. Our Transfer service specifically helps to effect meaningful, genuine risk transfer. Our specialized knowledge across Cyber Insurance Placement, Security Advisory, Testing, Intelligence, and Incident Response (IR) positions us to accomplish this. Our data-driven approach allows us to better advise on risk prioritization. We help you quantify your total cost of cyber risk to make complex security investment and risk transfer decisions.
We are in the business of better decisions.