TEL AVIV (Reuters) – Ratings agency Moody’s Corp. and israel’s cyber group is Team8 launches on Thursday, is a joint venture, in order to assess the vulnerability of companies in the cyber-attacks, and create what they hope will become a global benchmark.
FILE IMAGE: A man types on a computer keyboard, a computer in the front of the display, the cyber-code, in this illustration photo taken on March 1, 2017. REUTERS/Kacper Pempel/Image/File Photo
Cyber-attacks are in focus, after the virus from the Ukraine, and all over the world, in 2017, crippling thousands of computers, is the disruption of the port of Los Angeles, california, to Bombay, and even to the cessation of production at a chocolate factory in Switzerland.
Similar to the way in which banks will be able to check their stability, stress-tests, Moody’s, and Team8 is to develop a framework for the measurement of the companies in the defence and preparedness for such an attack, in comparison to the other companies in the course of time.
It will be a resource for companies involved in mergers and acquisitions, or the purchase of cyber insurance, said Derek Vadala, chief executive of the joint venture, in which it most recently has served as the head of Moody’s cyber-risk group.
They did not disclose the financial details.
“Companies that do business with each other and are spending more and more resources to understanding the risks associated with doing business with the third parties and fourth parties,” Team8 CEO, Nadav Zafrir told Reuters on the sidelines of the Tel Aviv University cyber conference.
“We believe that it is not just that the slowing down of the economy, but we are going to see this slant is getting worse,” Zafrir, a former commander of Israel’s elite 8200 military intelligence unit, has been added.
The new company will be based in New York and in Israel, and it shall be, in the first instance, with a dozen employees, but they are expected to grow up to be hundreds of them in the years to come.
The creator of the cyber, defense, start-ups, Team8 is funded by the Moody’s and the other big companies such as Microsoft, Airbus and Qualcomm.
Companies are well aware of the growing cyber threats, as well as the total cost of the security of the information, materials, products, and services is expected to reach $ 124 billion by 2019, according to a new report from consulting firm Gartner, is that the estimated total expenditures to exceed $114 billion by 2018.
A coordinated global cyber attacks, spread via malicious e-mail can lead to economic losses of between $85 billion and $193 billion, a hypothetical scenario was developed as a stress test for the risk management of the show.
In this scenario, claims are paid by the life insurance industry is estimated at $ 10 billion-$27 billion, the report from the insurance market Lloyd’s of London and Aon said.
Vadala also said the company is in the construction of the model, and expects to have a beta customer in one year. The idea is to go through the thousands of companies that the index is a global standard, ” he said.
Reporting by Tova Cohen; editing by Emelia Sithole-Matarise