Russia’s invasion of Ukraine is set to have severe repercussions in Australia. Businesses are now at a higher risk of cyber-attacks, increased commodity prices for imports and exports, inflation and pricier insurance premiums as a result of the attack.
The situation in a nutshell
Before Russia invaded the former Soviet Republic of Ukraine in late February 2022, the latter had a population of 44 million. Within a fortnight, more than two million Ukrainians had fled their country, 516 people had been killed and 908 injured. Why? Russian President Vladimir Putin said in a TV address on 24 February that his country could not feel “safe, [to] develop and exist” due to the [perceived] constant threat from Ukraine, says the BBC.
Why Ukraine’s invasion is a cyber risk to Australian businesses
Pre-war, Russian ‘hacktivists’ wreaked havoc for financial gain, but are now more likely to do so for political gain as well. While security experts say Russian cyber hackers are not yet likely to attack Australians directly in response to the new financial sanctions we’ve placed on their country, think of the domino effect of collateral damage!! Companies such as Google, IBM, Amazon, and Visa are clients of Ukrainian IT companies, and if attacked could lead to a breach or failure of essential services for Australian businesses.
Imports and exports (higher commodity prices and inflation)
The war is expected to impact Australia through trade – we are Ukraine’s key economic partner in the Oceania region. The flow-on effect means higher prices for agricultural produce and manufactured goods, fuelling inflation. Also expect insurance premiums to rise because of the higher risks, such as through cyberattacks.
Review your cyber insurance with us
It’s important to understand an insurers’ fine print around definitions such as ‘war’, ‘war exclusion’ and ‘hostile act exclusion’, whether your policy exclude losses resulting from war and/or protects you from digital threats, such as data breaches.
It is time to consider what a cyber security insurance policy does typically cover, such as the costs associated with:
- Revenue loss due to interrupted business
- Recovering or replacing your data or records
- Defending legal claims, including for infringements regarding copyright and intellectual property
- Investigations by a government regulator
- Preventing further attacks.
Now’s the time to review your cyber security risk profile. We can guide you on your choices through this very fluid situation.
If you would like to know more about cyber insurance, please CLICK HERE or contact us for more information