The business problem: cyber losses are operational losses
Cyber isn’t just an IT problem. It’s a downtime problem, a cash flow problem, and a decision-making problem.
Many businesses have improved their defenses, and the cyber market has stabilized compared to peak volatility. But the underlying threat environment remains serious—especially with evolving ransomware tactics, business email compromise, and the growth of shadow tools inside organizations.
What cyber events hit businesses most often?
1) Ransomware (and the “double extortion” era)
Ransomware is no longer just “encrypt and demand payment.” Many attackers now steal data first and use it as leverage. Even when you don’t pay a ransom, costs can stack quickly through forensic work, restoration, legal guidance, and operational disruption.
2) Business email compromise and payment fraud
Business email compromise (BEC) often exploits process gaps more than technical flaws. The “hack” is frequently social—someone impersonates a vendor, a leader, or a known contact to trigger a payment.
3) Shadow IT (and shadow AI)
Shadow IT—unsanctioned apps, tools, and cloud services—expands your attack surface and weakens oversight. Shadow AI adds a new layer: sensitive information can be shared in tools that were never designed to store your data safely.
The prevention-first controls that matter most (and why)
Think of these as your “minimum viable cyber program” for both resilience and insurability.
1) Multifactor authentication where it counts
Prioritize MFA on:
- Remote access (VPN/remote desktop)
- Admin accounts
- Finance and payment systems
2) Endpoint detection and response
Endpoint monitoring helps detect and contain threats before they spread. Many insurers and incident responders view this as a foundational control.
3) Backups that are segmented—and regularly tested
Backups reduce ransomware pain only if:
- They can’t be easily encrypted by the attacker
- You can restore quickly
- You have practiced restoring, not just assumed it works
4) A written incident response plan (short is fine)
A usable plan includes:
- Who makes decisions
- Who contacts legal/forensics
- How systems get isolated
- How leadership is briefed
- How communications are handled
The goal is not a binder. The goal is speed and clarity under stress.
5) Payment verification controls to prevent BEC losses
Practical steps:
- Out-of-band callbacks for vendor payee changes
- Dual approvals for high-dollar transfers
- Documented banking change procedures
- Training that reinforces compliance under urgency
If you prevent the transfer, you prevent the loss.
How to control shadow IT without crushing productivity
Shadow tools often grow because employees are trying to move faster.
A practical approach:
- Publish an approved tools list
- Create a fast “request and approve” path
- Monitor for unknown storage and apps
- Train managers to escalate tool needs instead of ignoring them
The point isn’t to block work. It’s to make safe work easy.
Key Takeaway
Cyber insurance may be more stable in 2026, but cyber losses are still operational losses. If you want predictability, focus on controls that reduce severity: MFA, endpoint monitoring, tested backups, an incident response plan, and strong payment verification to prevent BEC losses.
FAQ
1) What cyber control gives the fastest risk reduction?
MFA on email and remote access—because credential theft is a common entry point.
2) Why do insurers ask so many questions about ransomware?
Because ransomware remains a top severity driver, and outcomes depend heavily on controls like MFA, endpoint monitoring, and recoverable backups.
3) What is shadow IT and why is it risky?
Shadow IT is the use of unapproved tools that bypass oversight, expanding attack surfaces and increasing breach likelihood.
4) How do businesses prevent wire transfer fraud?
Use callback verification, dual approvals, and strict payee change procedures—then train teams and test compliance.