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Practical Management of Cyber Exposures and Aggregations

Cyber risk has emerged as one of the most dynamic and challenging perils in today’s risk landscape. It is a human-caused and often maliciously motivated threat that can transcend geographical and sectoral boundaries, creating unique challenges for insurers and reinsurers.

Unlike ‘traditional’ perils, cyber events are not easily constrained by time, space or rational progression, complicating efforts to assess exposure, manage accumulations and define events. Rapid evolution of technology, diverse threat actors and growing interconnectivity exacerbate this complexity, demanding a multidisciplinary approach to risk quantification and management.

This report highlights the key issues in managing cyber risk today, including data quality and governance. It discusses the evolution of exposure management frameworks and the role of cyber aggregation frameworks and models in creating a more structured understanding of accumulation potential.

This report also explores the challenges of collecting and standardising data, the benefits and drawbacks of various modelling methodologies and the need for upskilling within exposure management teams.

Access the full report today and enhance your understanding of cyber risk.