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Risk Management

Finding insurance solutions to the challenges that new technology has presented can start with the simple ISO 31000 Risk Management Framework that considers: 


  • Risk Minimisation
  • Risk Retention 
  • Risk Transference.


Essentially, it is just reducing risks in whatever we do; keep some and pass the rest to others (at a price). While technology should be used to effectively reduce and efficiently transfer these risks, the art is in the design.


Control & Transfer

Minimise

Avoidance & Mitigation

Reducing risks is part of safety and many companies will take the necessary actions to protect their business and staff. Using cybersecurity as an example, there are 7 simple ways to minimise risks. 

Transfer

at a price 

Through commercial insurances, or Societies like the Medical Protection Society for doctors, Cybersecurity Association Singapore for SMEs.

Retain

self-nisured

Deductibles and co-insurance are standard mechanisms in insurance for you to retain high frequency, low severity losses. Set them at a level where you could afford to effectively lower your insurance costs.    

Cyber Protection

Companies with limited resources can improve their cyber protection with:

  1. Strong passwords and two‑factor authentication 
  2. Software updates on phones, computers, servers, wifi etc.
  3. Install basic antivirus, firewall, threat monitoring software.
  4. Limit access to sensitive data.
  5. Back up data, and store backup offline or in secure cloud storage
  6. Staff training to prevent phishing and social engineering.
  7. Use secure Wi‑Fi and lock devices when not in use.

CASL -- CAstle plan

The Cybersecurity Association Singapore Limited (CASL) has a Castle plan that is very cost effective in providing companies with a complete suite of cyber protection services and insurance. It includes cyber rating report, audit assistance, technical, legal advisory, incidence response, investigation, reports and recovery: www.cybersecurity.org.sg


Rainy Days 

Captives and mutuals are retention mechanisms for large corporates but they would require an insurers' licence. For smaller companies, they could participate in pools, contingency funds or protected cell companies organised to aggregate and self insure.

      

Optimise To Maximize