Lisa Carter - Managing Director, Clear Insurance
Cyber Risk: It's Not Just an IT Problem
Cyber risk belongs on every business leader’s agenda. The growing scale, complexity, and financial impact of cybercrime make it a challenge that extends well beyond IT. Today’s business environment demands that cyber resilience is woven into your overall business strategy, not treated as a technical afterthought or IT Problem.
A compromised business email can drain $40,000 before detection. Ransomware can halt operations, trigger contract breaches, and lead to million-dollar demands. These are real threats for every organisation.
Types of Loss to Consider
Cyber incidents cause two kinds of loss: direct losses to your business (such as IT recovery, legal costs, lost income, reputational damage, and ransom payments) and losses impacting customers, suppliers, or partners whose data is compromised.
Severe financial penalties under the Privacy Act and directors’ duties under the Corporations Act make it essential to protect both your
business and your stakeholders.
Risk Reduction Starts With Culture
People, not systems, are the most common entry points for cyber-attacks. Phishing emails and fraudulent payment requests succeed by exploiting trust and urgency, not technology gaps.
Reduce risk by building a cyber-aware culture: verify payments, use multi-factor authentication, keep software updated, and have an incident response plan ready.
Where Insurance Fits
Cyber insurance provides financial protection when incidents occur. It helps cover costs that internal controls can’t always prevent; like IT recovery, legal expenses, business interruption, and ransom demands. Insurance is not a substitute for strong cybersecurity or risk management.
The right coverage depends on your business size, data, and contracts. It’s advisable to talk to a qualified risk and insurance adviser who can tailor your risk transfer and insurance program to your specific needs.
Business leaders who prioritise cyber resilience send a clear message: safeguarding information, operations, and reputation is a strategic priority. For guidance on how your business can strengthen its approach to cyber risk, contact Lisa Carter for confidential discussion on 0405 219 861 or by email at lisa.carter@clearinsurance.com.au.
General Advice Warning:
This advice is general and does not consider your objectives, financial situation or needs. You should consider whether the advice is
appropriate for you and your personal circumstances. Before deciding on a certain product, obtain and read the product disclosure
statement. Clear Insurance Pty Ltd. ABN. 41 601 916 689. AFSL No. 548953.
