Unlocking Cyber Resilience

Are you prepared for the growing impact of cyber risk on the actuarial profession?

Digital threats are rapidly evolving, with one cybercrime reported every six minutes and ransomware causing up to $3b in damages to the Australian economy every year. ^[1]

To address this and its impact on the actuarial profession, the Actuaries Institute's Cyber Risk Working Group has launched the Cyber Risk Knowledge Hub - a central repository of resources designed to equip actuaries with the latest insights, tools and strategies for managing cyber risk effectively.

In the increasingly prominent and continually evolving area of Cyber Risk, actuaries play a critical role in understanding, managing and advising on this risk, especially within risk management and insurance.

Recognising the growing interest among actuaries to deepen their understanding of cyber risks, the Cyber Risk Working Group developed the Knowledge Hub to provide focused, up-to-date references tailored to actuaries' needs.

The Knowledge Hub includes:

• Reports and white papers on emerging cyber risks and trends
• Tools and frameworks for assessing and managing cyber threats
• External resources on cyber risk management, including industry case studies and best practices.

These resources have been curated to support actuaries across different roles, from risk managers to directors overseeing organisational risk management strategies.

As both business and personal life increasingly move online, cyber risk becomes ever more central to actuarial work.

Key considerations include:

• Data vulnerability: Actuaries regularly handle sensitive data that are prime targets for ransomware and extortion attempts
• Risk assessment: The need to form quantitative views on frequency and severity of cyber events
• Compliance requirements: Understanding and implementing regulatory guidance and recommendations
• Strategic input: Opportunities to influence how data is captured, managed, and secured

The potential consequences of cyber incidents extend beyond immediate financial losses to include legal and reputational impacts, making comprehensive risk understanding essential.

The Knowledge Hub facilitates continuous learning, ensuring actuaries can efficiently access needed materials without "covering old ground".

The Hub's resources support various actuarial roles:

• Risk managers can leverage resources like OAIC statistics and data breach analyses to form quantitative views on cyber events
• Actuaries in pricing, reserving and portfolio management can get a quick view of market data and practices for cyber insurance products
• Actuaries in risk management functions can access compliance resources, including APRA guidance and ASIC-surveyed areas for improvement in cyber risk management control
• Those in director positions can utilise AICD's guidance on managing cyber risk, such as the Cyber Security Governance Principles

As an ever-growing resource, the Hub will continue to expand as new developments come to the Cyber Risk Working Group's attention, assisting actuaries in deepening their understanding as the field evolves.

The Knowledge Hub not only fosters individual learning but promotes collaboration across disciplines, encouraging actuaries to share ideas and solutions. The Institute invites all members to explore the Cyber Risk Knowledge Hub to enhance their professional practice and contribute to the ongoing conversation on managing cyber risk in the digital age.

For more information and access to these resources, visit the Cyber Risk Knowledge Hub .

^{[1] https://www.homeaffairs.gov.au/cyber-security-subsite/files/2023-cyber-security-strategy.pdf}