The important of a forensic accountant in a cyber loss
Cyber insurance breaches and associated losses are frequently in the news, with a few large, reputable organizations being the latest targets of cybercrime. On November 1, 2018, mandatory reporting and record keeping came into effect under the federal government and the Personal Information Protection and Electronic Documents Act (PIPEDA) in Canada, requiring companies to report most cyber incidents. With this new mandatory reporting, we are likely to see an increase in reported cyber breaches.
Cyber losses in and of themselves can be challenging for insured parties to address, let alone managing the business interruption portion. In such instances, forensic accountants can be leveraged to assist in navigating through the business interruption component. As the realm of cyber risk management matures and develops in response to actual occurrences and market demands, associated changes to policy wording and coverage terms will follow suit. Being able to utilize the expertise of a forensic accountant that is well versed in cyber losses, familiar with coverage terms, and who can accurately calculate and provide support on the quantification of resulting economics is beneficial.