Incident-
On 19th March, 2019, Norsk Hydro ASA, one of the world’s biggest aluminium manufacturers has confirmed that Cyber attack affected operations. As result of Cyber attack, Norsk Hydro has halted its some of operations and switched other units to manual operation because hackers blocked its systems with ransomware.
Norsk Hydro has also confirmed that it has well structured Cyber Insurance Policy placed with recognized global insurers.
Indicative loss amount – Loss may exceed $41 Mn
Business Interruption period – More than 40 days***
***Still no news that Norsk Hydro has restored its operation completely.
Major Cyber Risk Exposure for Manufacturing Industry-
As revealed in Deloitte study, titled Manufacturers Alliance for Productivity and Innovation (MAPI) – Companies involved in manufacturing business are said to be more exposed to cyber attacks.
Al manufacturing companies are using automation system operated through computer, but most of Manufacturing Companies do not have in place Cyber Disaster recovery plan, such as IT Security Plan, Business Continuity Plan etc.
Major Cyber exposures are –
- Business Interruption – net profit loss
- Cyber extortion & ransom demand
- Fees & expenses of Cyber Incident Response team (Forensic experts, PR agencies, etc)
Risk Transfer Solution-
Cyber Insurance policy is best risk transfer tool used by most of the manufacturing companies all over the world.
For detailed discussion on Cyber Insurance Policy, Please contact Beacon Insurance Brokers Pvt Ltd.