Insider Engage, is part of the Delinian Group, Delinian Limited, 8 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2023

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Cybersecurity and Credit Risk

Hacker attacking internet
Credit:
Milan_Jovic/Getty Images

Recent headlines confirm that cybersecurity attacks are an ever-present and growing risk to corporations, financial institutions, governments, and other entities. According to Specops Software research, the U.S. was the most targeted country for cyberattacks between May 2006 and June 2020, followed by the United Kingdom and India.[1] Even corporations and countries in which key economic agents and the government spend a substantial amount of time and resources on comprehensive cybersecurity plans and infrastructure are exposed to significant risks.

Assessing an issuer’s management performance and capability has long held a prominent role within Kroll Bond Rating Agency’s (KBRA) credit process. In KBRA’s view, it is important for an issuer’s management team to understand its environmental, social, and governance (ESG) risk profile to mitigate or capitalize on relevant ESG risks and opportunities. KBRA has identified a subset of the most common ESG factors that can be credit-relevant for corporate, financial, and government issuers. These risks include, but are not limited to, stakeholder preferences and reputational risk, climate risk, and cybersecurity risk.

In this report, KBRA focuses on the increased exposure to cybersecurity risk that corporates, financial institutions, and government issuers face, as well as the potential credit implications. Through our research, we have developed potential questions to assess the quality of an issuer’s cybersecurity systems, which are included at the end of this report.

TO DOWNLOAD THE FULL REPORT, PLEASE CLICK HERE.

[1] The countries experiencing the most ‘significant’ cyber-attacks

More...

  • Managing inflation risk on both sides of the balance sheet

    Central banks have hiked their base rates in response to inflation. For insurers, both sides of their balance sheet have been left exposed to risks, impacting profitability as the cost of claims increase and the value of investments fall. While geopolitical tensions and inflationary pressures continue to pose a threat to the global economic landscape, how can insurers mitigate the risk of inflation-driven exposures?
  • The View from Bermuda: 1/1 Renewals 'Reset' The Reinsurance Market

    As the dust settles on a hectic 1/1 renewal season, the Bermuda market is catching its breath and looking forward to 2023. On a trip to Bermuda earlier this month, a number of senior leaders told Insider Engage that the renewals were chaotic and underwriters were very busy the week between Christmas and New Year’s, as rates, terms and conditions hardened dramatically.
  • An agenda for change at Lloyd’s

    Lloyd’s Market Association CEO Sheila Cameron is looking forward to an action-packed year: new regulation, digitisation and human resources development are all in the mix