General Insurance Article - LGIM calls for compulsory cyber audits


Legal & General Investment Management (LGIM) has voiced concerns over board awareness of cyber security risks within companies. It has called for greater collective action from the government and major investors to help companies and says ‘now is the time’ for compulsory cyber audits to be introduced.

 LGIM believes companies should protect their digital infrastructure in 3 key ways:
     
  1.   First, by identifying and monitoring information assets as a strategic issue.
  2.  
  3.   Second, to attain documented evidence that these risks are being managed by conducting audits.
  4.  
  5.   Third, for cyber awareness to be embedded in the culture of the company.
 David Patt, Senior Analyst, Corporate Governance and Public Policy at LGIM, said:
 “From an investor perspective we believe a focus of governance is the protection of the assets we are investing in – both physical and human.
  
 “Cyber security is a significant risk to our investee companies. It is incumbent of us to discuss how company boards are managing cyber security and their digital infrastructure throughout the corporate year. We are concerned that many responses we receive to this major corporate risk are insufficient. Boards need to be more aware of their operational environment and emerging threats to their business. Simply put, it can affect a company’s value.
  
 “Although it may be impossible to completely eliminate this risk, a company which understands how cyber security is linked to the business strategy will be able to make more informed decisions, manage problems better and ultimately provide more disclosure.
  
 “The Government and a few major investors such as ourselves are more engaged than we have ever been. Now is the time though for even greater collective and consistent action to help companies – a compulsory rigorous external cyber audit must now have its time.
  
 “This is a key strategic issue and a board responsibility. It is not just the domain of the I.T. department – we all have to be the I.T. guy”.
  

Back to Index


Similar News to this Story

Sleighing the risks by giving Santa the insurance he needs
While you might be the most magical employer in the world, we know that even you aren’t immune to the risks of running a global delivery service! From
Diversity improving in insurance and long term savings
Key figures from the Association of British Insurers’ latest Diversity, Equity and Inclusion (DEI) data collection highlight the work of insurers and
Almost a third of homeowners have been victims of burglaries
Research commissioned by Co-op Insurance reveals that almost one in three (29%) homeowners have been the victims of theft from their home. The member-

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.