Indemnity Claims are Bound to Increase due to Cyber-Attacks

Private sector and academia meet to tackle the Cyber-agenda. Participants in the “Cyber-Security Scenario Analyses for Retail and E-Commerce” event, jointly organized by Kadir Has University, Atos, Marsh, and Unsal Gunduz Law Firm, discussed the potential losses due to cyber-attacks getting more complicated everyday with the rise of artificial intelligence.

Date: Issue 74 - May 2017

While the technological advancements change the rules of the game in the business world, they also create a whole new agenda: “Cyber security”. Atos, one of the leading IT companies of the world, Marsh, a leading insurance brokerage and risk management company, and Unsal Gunduz Law Firm, came together at an event in Kadir Has University, in order to tackle the concept of cyber security, which has become an important problem encompassing a wide range of areas such as government policies, corporate and industry agendas, and consumer vulnerabilities. 

With the help of a simulation program prepared specifically against the cyber attacks in retail and e-commerce industries, participants searched answers to some important questions such as: “How should the crisis management and strategic communication be carried out?”, “What should we do to adopt a common language in such attacks?”, “How should we construct the technological infrastructure?” in the event organized by the Cyber Security and Critical Infrastructure Protection Society of Kadir Has University. 

Artificial Intelligence Will Make Everything More Difficult

Mr. Ahmet Salih Bicakci, a faculty member at Kadir Has University said: “We need actions and measures on a national level in order to increase cyber-awareness.” Reminding that the cyber-attacks are becoming more complex and sophisticated every day, he added: “The anti-virus technologies are not sufficient to overcome this challenge. It is possible to break into all types of systems.” 

Mr. Bicakci stated that the attacks were becoming more advanced by the day, and he noted: “Because of this, we need flexible and manageable solutions. In case of a crisis you have to inform your stakeholders about it. We are now discussing the concept of security through transparency.”  

Mr. Bicakci indicated that their aim was to show methods for establishing institutions with flexible and resilient structures, and up-to-date business continuity plans. He added: “In the era of big data and artificial intelligence, the only way to fight with these threats is to come up with a different perspective. As Kadir Has University and its stakeholders, we have set on this journey with this target in mind.” 

Attacks are Most Frequently Encountered in the Olympics 

Mr. Yalcin Dizdar, the Big Data and Security Solutions Country Leader of Atos, a global leader in security solutions with more than 4500 specialists, emphasized that the company translated the cyber-security know-how obtained in the Olympics into business processes. 

“We have been developing, administering, and protecting the IT infrastructure of the Olympics since 2004. Especially recently, the Olympic games became a major target of cyber-attacks. I would like to emphasize that with the expertise of Atos, none of these attacks have been successful”. Mr. Dizdar added:   

“Constant monitoring of the systems with various automation tools and analysis methods, and the ability to take immediate action against the alarms make it possible to neutralize or minimize the attacks before they can create an effect. This can only be provided by professional and advanced Security Operation Center (SOC) services. Atos is one of the most successful service providers in this field...” 

Having said that the negative repercussions of cyber-attacks are not limited to the IT department, Mr. Dizdar added: “Close coordination between various departments is required, such as: legal, finance, risk management, and even corporate communications, sales, marketing, and operations management. Cyber-attacks do not only create material losses, they also undermine the trustworthiness and reputation of the companies.   

Crisis at Our Door... 

Ms. Hande Bilgisu, Marsh Risk Consulting Turkey Country Leader, underlined that the possible IT interruptions that could arise from cyber-risks should be analyzed. She added: “Actions such as cyber-security audits carried out by critical service providers, enhance the resilience and flexibility of the companies against unexpected events.” Ms. Bilginsu stated that the cyber-security management should be holistic, and company-specific cyber-scenarios should be envisaged by considering their respective probabilities and effects. She added: 

“If companies cannot cope with cyber-crisis, they will have to deal with indemnity claims. There is a long list of possible losses, such as: loss of business, loss of customers, administrative fines to be issued by the regulators due to the breach of personal data confidentiality. Also third parties whose personal data was disclosed, could claim indemnities, on top of which there could be legal fees to be paid.” 

Lines are Blurred Between the Digital and Analogue Worlds 

Mr. Burcak Unsal, one of the partners in Unsal Gunduz Law Firm, underlined the importance of the subject: “Lines are blurred between the digital and analogue worlds. Cyber-risks impose on us new responsibilities towards the state, our customers, and all of the third parties with whom we do business. We offer solutions to legally manage and minimize these risks.”