Cyber Risk Mitigation, a Central Component of Best-In-Class Industrial IoT Solutions
September 29th, 2020
Industry 4.0 has enabled the digital transformation of virtually every sector in the global knowledge-economy. IoT’s capabilities, ubiquitous satellite and high-speed 5G data networks, and AI cloud apps have transformed reactive operational processes into unified collections of automated workflows. IoT sensors and predictive analytics not only provide real-time situational awareness but preemptive insights into if, when, and even, how a critical equipment might fail.
According to McKinsey, the global number of IoT-connected devices is projected at 43bn by 2023. Yet, as systems become less centralized and the number of edge-devices grow, the potential touch-points for cyber-criminals increases exponentially. The insurance industry sees cyber risk as a very real problem. Growing regulatory intolerance of so-called ‘silent cyber’ means that property underwriters are increasingly unwilling to cover losses resulting from cyber attack. With the market hardening, a collaborative, partnership approach between insurers, IoT solution providers, and cyber experts is required to reconcile inherent benefits and risks of Industry 4.0 technologies.