A Digital Policy advisory panel member has said effective cyber risk management can be used to enhance customer confidence.
Philip Virgo believes cyber risk management is becoming an increasingly important area as company directors realise the limitations of insurance cover.
In general, insurance only covers the cost of the cyber incidents but not third party liabilities for data breaches.
Virgo believes there are four key tactics for gaining business benefit from effectively managing cyber risk and turning individual risk into a competitive advantage.
He believes the security teams in organisations should work to make the IT security team and the marketing team put up joint proposals for websites that are both secure and easy to use.
Virgo added: “Security teams and marketing teams need to talk to each other and collaborate on all customer-facing systems to provide a good customer experience, while improving security.”
He added that such collaborations enable organisations to use third-party services to verify who their customers are, without storing unnecessary data or asking too many questions.
Virgo said: “There are all sorts of services around that will easily and cheaply check if the mobile used was issued to the person the caller is claiming to be, and is in a credible location.
“This is an example of how to make it easier for customers to access an organisation’s services and for the organisation to check who they are dealing with.”