Cyber risks were not major risks for most local mining companies before the Covid pandemic changed the way that operations are conducted. Globally, Cyber related attacks and losses in the mining space have increased over the years from the 2010 combined attack on Rio Tinto Group, BHP Billiton Ltd. and Fortescue Metal to more recently the 2021 Weir attack which has an estimated $27 million revenue loss.
Post Covid, the use of digitally integrated systems, the move toward autonomous equipment and use of artificial intelligence improved across all aspects of mining operations but it also increased the cyber risks companies are faced with.
Cyber risks are varied and attackers can be your own employees, third parties exploiting your systems directly or through contractors with access to your systems. Breaches in the cyber arena can be caused by local or international attackers. Although mining entities have invested in monitoring, maintaining and upgrading their IT and digital systems, the fast-paced nature of developments in this space poses a risk that they may be unable to prevent all cyber-threats.
The main effects of such attacks on mining operations include
Cyber Insurance solutions are available which provide cover for first-party losses (e.g. business interruption, restoration, and crisis communications) and third-party losses, (e.g. data breaches, network interruption, and notification expenses). These Insurance solutions provide cover in areas that traditional insurance policies have gaps or exclusions.
However, because of the unique nature of cyber risks, a one size fits all view does not work. Firstlink emphasises a customised cyber insurance program design for each client cemented by our 360° Risk Management approach. This process would involve investigating and clearly defining the cyber risk exposures existing as these differ according to the type of mining operation. These exposures should also be quantified financially to determine their worst-case scenario impact on client revenues should a loss occur. Pre-loss and Post Loss scenarios are modelled and we guide the client in developing an internal cyber risk management framework to complement the insurance being purchased. This results in an optimal program design, with a clear balance between exposures,
insurance cover and premiums.
Talk to us today about Cyber Insurance cover for your mining operation.
