Systems, systems, systems! Businesses both large and small are increasingly placing reliance on 3rd party systems to ensure the continuation of operations. Whether a company places reliance on a cloud service provider or a flight planning system that tracks the weight and balance of a plane, system reliance brings with it risk.
As an industry, whilst cautious, insurance has a growing appetite to accept the risk of business interruption resulting from system failure through cyber risk transfer. As portfolios are constructed, events like the recent Aerodata outage remind us of the potential for accumulation and highlight how this can propagate through largely unknown software. My question is, are you aware of what’s lurking in your portfolio?
At CyberCube we help lead the conversation around such topics. Our analysts monitor the cyber threat landscape and continually update our view of the types of event which drive concentration risk. Our Portfolio MKanager application brings to market our deep, multi-disciplinary expertise and supports our clients by improving understanding of the potential for accumulation of insurance loss.
A Southwest statement said that the airline had lifted a ground stop of 7:05 a.m. that had lasted for about 40 minutes "during an outage with a vendor that services multiple carriers with data used in flight planning."