FFIEC Members Evaluate Cyber Insurance For Financial Institutions

The Federal Financial Institutions Examination Council (the "FFIEC") advised financial institutions to consider incorporating cyber insurance into their broader defense against cyber threats. In a joint statement, the FFIEC encouraged institutions to review their risk management programs in light of the increasing number and sophistication of cyber-attacks.

According to the joint statement, institutions that are weighing the costs and benefits of adding cyber insurance to their risk management programs may want to consider (i) including multiple stakeholders in the decision, (ii) conducting proper due diligence, and (iii) reviewing cyber insurance in an annual insurance review and budgeting process.