Strengthening business continuity against cyber risks

In today's digital landscape, cyber incidents pose significant risks to organisational operations and reputations. For Victorian government entities, robust business continuity planning (BCP) that integrates cyber security measures is essential, as BCP is no longer just about preparing for disruptions like natural disasters – it must also proactively address the growing threat of cyber incidents.

Cyber threats, such as ransomware attacks or data breaches, can lead to significant operational downtime, financial losses, and reputational damage. Having strong business continuity strategies in place is crucial to ensuring organisational resilience.

Responding to cyber incidents

An integral component of any effective BCP is a Cyber Security Incident Response Plan (CSIRP). A CSIRP should be integrated with an organisation's broader emergency, crisis, and business continuity frameworks, as well as national and wider jurisdictional cyber and emergency protocols, so that the organisation can handle cyber incidents efficiently. The plan must be customised to the organisation’s specific context, priorities, resources, and legal obligations, with clearly defined roles and responsibilities. Organisations could also develop detailed operational procedures and playbooks to address common cyber threats like ransomware or data breaches.

The Australian Cyber Security Centre (ACSC) has highlighted a rise in malicious cyber activity against Australian governments, businesses and critical industries, in their Annual Cyber Threat Report 2023-24. The frequency, scale, and sophistication of these attacks are increasing, influenced by the widespread interconnectivity and exposure of IT platforms, devices, and systems. Despite strong cyber security measures, inherent risks remain and organisations are facing higher expenses for recovery, mitigation and compliance when a cyber incident occurs.

To ensure a CSIRP is effective, organisations should regularly test and review the plan, and have a well-defined Incident Management Team (IMT) who is responsible for managing the entire incident response from start to finish. Based on VMIA’s claims experience, we know that an effective IMT and CSIRP are key to swiftly and efficiently responding to incidents, which is crucial for minimising reputational damage and limiting the size of your loss.

In Victoria, the Department of Government Services offers a CSIRP template to help organisations develop their internal plans. These plans align with Victoria's Cyber Security Incident Management Plan and the State Emergency Management Plan Cyber Security Sub-Plan. Further information and access to the template can be found here: Cyber Security Incident Management Plan

How VMIA can help

VMIA's Cyber Insurance Policy offers comprehensive support and coverage. It plays a vital role in BCP by providing financial protection and resources for recovery.

When a client notifies us of a major cyber incident, VMIA collaborates with the Department of Government Services' Cyber Incident Response Service (DGS CIRS) to ensure appropriate cyber vendor support services are provided to impacted clients through VMIA’s panel of trusted providers.

The Cyber Insurance Policy supports incident response, including forensic analysis and legal advice, and covers data breach costs, such as notifications, call centres and credit monitoring. It also addresses business interruption costs, providing financial stability during disruptions, and offers harm reduction services like identity monitoring. The policy also covers legal defence, regulatory fines, and data restoration costs to facilitate quick recovery and compliance with privacy regulations.

Business continuity planning equips Victorian government entities with a robust framework for managing cyber risks, ensuring they are well-prepared to respond and recover effectively from cyber incidents.

If you have a cyber insurance policy with VMIA, our end-to-end support ensures you receive comprehensive protection and peace of mind throughout every stage of the incident response journey.