How do cyber insurance policies relate to cybersecurity risk management?

Cyber insurance policies can play a complementary role in an organization’s overall cybersecurity risk management framework. These policies typically cover financial losses associated with data breaches, cyberattacks, and other cyber incidents. When integrated into the risk management framework, cyber insurance can help mitigate potential financial impacts and provide added incentive for organizations to strengthen their cybersecurity measures. It is crucial for organizations to align their insurance coverage with their specific cybersecurity risks and ensure that the policies complement, rather than replace, effective cybersecurity practices.