Casualty Actuarial Society forming task force on cyber risk

Published April 14, 2014 by Robert Powell, III

The Arlington-based Casualty Actuarial Society is forming a task force to address the growth of cyber risk 

The task force will promote research and analysis of cyber risk, with a focus on financial consequence of cyber attacks.

“We believe that in addressing the challenge of cyber risk analysis, it is essential to follow a multidisciplinary approach that brings together experts in actuarial science, cybersecurity and information technology, big data analytics, legal and other fields,” Alex Krutov, chairperson of the Task Force on Cyber Risk, said in a statement.

Managing cyber risk exposure, the organization said, can range from employing more effective information security measures to wider use of cyber insurance.

Cyber risk is one of the key components of operational risk to which every company is exposed, the society said.

Many aspects of cyber risk remain poorly understood, the society said.  With few exceptions, the expertise needed to analyze cyber-related events, such as data breaches or business interruption, is limited at companies exposed to risk and in the insurance industry, the organization said.

The 100-year-old Casualty Actuarial Society has 6,200 members, including experts in property-casualty insurance, reinsurance, finance, risk management, and enterprise risk management.