The fallout following a data breach can be particularly damaging for a financial institution. These institutions are built on the trust that are fully capable of minding the finances of others and that they will safeguard their customers’ finances along with any additional confidential account information in their database. When a breach or cyber attack occurs and this information is compromised the bank will have to make reparations that could easily total in the millions if the breach is severe enough.
An organization is likely to suffer severe reputational damage as well, and that might cause a company’s stock price to plummet, which is a loss in shareholder value, or they may lose a significant number of customers. Others, aware that the breach has occurred, may be hesitant to enlist that institutions service, creating an even larger concern over business prospects moving forward. This outlines the very real need for Bankers insurance that addresses cyber attacks.
Addressing the issue of hackers
To help combat any loss of brand value, new cyber insurance products available in the marketplace have been designed to tackle this specific risk directly. There are many policies to choose from, and most include “brand” or “reputation” damage coverage. This coverage is particularly useful to financial institutions, as they are held to a higher standard for protecting their customers’ information, given their role in protecting their assets.
Bankers insurance that addresses cyber liability concerns will help in the aftermath of an attack, but organizations can take steps to try to reduce their reputational exposure. Your staff should have an understanding of the type of information they hold and what it means in terms of providing protection. There should be a plan in place, ready to roll out quickly, in the event of a data breach. Your organization should utilize a team with different skill sets to implement their plans, and ensure this is properly executed.
You should consider seeking the assistance of a public relations expert to handle the crisis. Above all, be transparent and honest about the circumstances, as this is also critical to addressing the issue at hand. Data breaches are likely to occur, so how your organization handles them will determine how any current and future customers will view you after the fact.