Cyber-physical risk models unveiled
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Risk Management Solutions Inc. has introduced a new class of risk models to address cyber attack scenarios that can cause physical damage, the Newark, California-based firm said Thursday.
RMS said the new class of “cyber-physical” models build upon its existing suite of its cyber models that focus on attacks against information technology systems, and allow insurers and reinsurers “to manage this growing risk for the first time.”
RMS said the five new risks scenarios, which are based on an analysis of lines including commercial property, marine, energy, industrial and facultative facilities, allow insurers to identify “silent” exposures: cyber-induced fires in commercial office buildings; triggered fire in industrial processing plants; triggered explosions on oil rigs; cyber-enabled marine cargo theft from a port; and regional power grid outages.
Andrew Coburn, RMS senior vice president for emerging risks, said in a statement that “with the rise of the internet of things, more devices are connected to computer networks, which opens up new vulnerabilities for hackers to exploit. They can target operational technology, and thus the essential fabric of any business — even its bricks and mortar.”
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