Cyberthreats are everywhere, and while they may be inevitable, their impact can be manageable. Institutions who are prepared for cybersecurity disruptions are proactive and collaborative about their response. This episode of the Forward Thinking Podcast features FCCS SVP of Marketing and Communications Stephanie Barton, Lisa Parrinello, FCCS VP of Risk Management & Insurance Services and Naomi Baumann, FCCS VP of Claims & Insurance Services. Together they discuss how Farm Credit's Captive Insurance Company is helping institutions strengthen their cyberdefenses and what boards of directors need to know to stay ahead of the cybersecurity game.

Episode Insights Include:

The bigger picture of cyberthreats

• Cyberthreats used to be considered an IT-only problem, but that isn't the case anymore.

• These enterprise-wide issues demand board-level attention.

• Ransomware, extortion, targeted financial systems and AI deep-fake impersonations are some of today's biggest cyberthreats.

• The goal today isn't just protection, it's resilience.

• A prepared institution can respond and recover from cyberthreats no matter where they hit.

The role of Farm Credit's Captive Insurance Company

• As the captive, they provide institutions cyber insurance and management services that go beyond what commercial insurance markets can offer.

• They offer tailored protection designed specifically for the unique cooperative structure of Farm Credit.

• Collaborative claims management proactively responds to any incident or threat of incident.

• Their strategic access to commercial markets allows them to purchase insurance as well.

• Over the years, Captive has saved an average of $50 million in insurance coverage.

• Consistent system-wide learning whenever instances occur.

Resilience tools and strategies

• Resilience requires a multi-layered approach based on assents and security needs.

• Threat detection and response pinpoint vulnerability, endpoint detection, and tabletop exercises.

• Human-centric risk management and ongoing employee training are critical for cyber risk management.

• Employees and people are always going to be the weakest link in cybersecurity.

• Data protection and resilience in communications in sensitive information need to be encrypted and backup tested.

• Cybersecurity is not an impenetrable armor, it is an anatomy with multiple systems working together to respond and continue operating in a culture of proactive risk management.

The pivotal role of the board

• Directors need to prioritize an approved annual cyber risk manual.

• Ongoing development and maintenance of a robust program is essential.

• Boards should receive quarterly reports on threats, vulnerabilities and mitigation actions.

• Cyber oversight needs to be integrated into business technology planning.

• FCA should be notified within 36 hours of any cyber incident.

The culture of cybersecurity

• Institutions build resilience when everyone is involved.

• Third party oversight and engagement with cyber-focused legal counsel is crucial.

• Most breeches don't happen in bad systems, they happen when good people let down their guard.

• Muscle memory kicks in when crisis hits, but only when preparation has occurred.

• Ultimately, cybersecurity is everyone's business.

This podcast is powered by FCCS.

Resources

Connect with Lisa Parrinello — Lisa Parrinello

Connect with Naomi Baumann — Naomi Baumann

Get in touch

[email protected]

"The goal isn't just protection – it's resilience." — Naomi Baumann

"The Captive provides consistent system-wide learning whenever instances occur." — Lisa Parrinello

"Human-centric risk management and ongoing employee training are critical for cyber risk management." — Naomi Baumann

"Employees and people are always going to be the weakest link in cybersecurity." — Naomi Baumann

"Even without a deep technical knowledge, boards can strengthen resilience by asking the right questions and staying engaged." — Lisa Parrinello

"Institutions build resilience when everyone is involved." — Naomi Baumann

Resilience is just as much about people as it is about systems." — Naomi Baumann