Emerging Cyber Risks in Critical Infrastructure – Insights from Cyber Tea Episode 2

Cybersecurity threats are evolving rapidly, and critical infrastructure sectors, like water systems, are at the forefront of these risks. In Episode 2 of Cyber Tea, coming soon wherever you get your podcasts, Cody Gillund, host and cyber risk expert from KYND, sits down with Jennifer Jobe, Director of Pooled Programs for ACWA JPIA, to discuss the pressing need for adopting emerging cyber risk coverage in critical infrastructure. The episode offered a wealth of insights into the challenges these sectors face and practical solutions for navigating the complex world of cyber risk management.

Here’s a recap of the key takeaways and actionable insights from the conversation.

Why Cyber Risk Coverage Matters

Many organizations in critical infrastructure sectors are slow to adopt cyber insurance due to misconceptions and operational challenges. There’s often a belief that smaller or less technologically advanced entities aren’t likely targets, but the reality is that no organization is immune.

Cyber insurance isn’t just a backup plan for when things go wrong—it’s a proactive strategy to reduce vulnerabilities, support recovery, and provide the resources necessary to stay resilient against increasingly frequent and complex threats.

The Unique Challenges Facing Water Systems

Water systems are an essential part of public infrastructure but often face obstacles that make cybersecurity especially challenging:

1. Aging Technology: Many water utilities rely on legacy systems that lack modern security features, leaving them vulnerable to attack.
2. Decentralized Operations: Spread-out infrastructure increases the complexity of securing endpoints and monitoring vulnerabilities.
3. Regulatory Gaps: Unlike other sectors, water utilities often operate with inconsistent cybersecurity standards.

These vulnerabilities aren’t just operational concerns—they pose significant risks to public health and safety. A cyberattack could disrupt water quality, interrupt essential services, and erode trust in these vital systems.

Breaking Down Barriers to Adoption

Adopting comprehensive cyber risk management strategies requires overcoming several key barriers. Simplifying the complexities of cyber insurance is a critical first step. Policies can feel overwhelming, especially to organizations without in-house expertise, but education and clear guidance help demystify the process.

Equally important is empowering employees to be a part of the solution. Training programs and awareness campaigns can significantly reduce the risks of phishing attacks and other human errors.

Building trust in cyber insurance is another vital step. Organizations need assurance that these policies are more than financial tools—they are part of a larger strategy for risk reduction and resilience. Collaboration among organizations, insurers, and risk pools plays a key role in providing access to advanced tools and expertise, even for smaller entities.

From an insurance perspective, one of the most effective ways to encourage better cybersecurity practices is through these insurance incentives:

• Premium Reductions: Organizations that adopt measures like multi-factor authentication and regular patching can qualify for lower premiums.
• Continuous Assessments: Tools like KYND’s risk assessments help members track improvements and demonstrate progress in mitigating risk.

The Role of Collaboration

Effective cybersecurity for critical infrastructure isn’t something any organization can tackle alone. Collaboration between public entities, insurers, and specialized risk management providers is essential to overcoming resource gaps and creating a unified approach to mitigating cyber threats.

For smaller organizations, like municipal water utilities or school districts, the lack of dedicated cybersecurity teams or budgets can make implementing robust defenses seem out of reach. However, collaboration offers a way to pool resources and expertise, ensuring access to advanced tools and strategies without bearing the full cost individually.

Risk pools, in particular, play a critical role in fostering this collaborative approach. By working together, pool members can share insights, align on best practices, and negotiate group access to cutting-edge cybersecurity solutions. This aggregated effort not only strengthens individual members but also fortifies the entire pool against potential threats.

Collaboration also extends to the partnerships between public entities and their insurers. Insurers are increasingly adopting a consultative approach, providing ongoing support through risk assessments, training, and real-time monitoring tools. This proactive relationship ensures that organizations are not only protected by a policy but are actively improving their security posture over time.

Another critical aspect of collaboration is the sharing of intelligence. Cyber threats evolve quickly, and staying informed about the latest attack vectors and mitigation strategies is vital. Partnerships that facilitate information sharing help organizations anticipate risks and adapt their defenses accordingly.

Actionable Insights for Risk Managers

In episode 2, we explore strategies for breaking down some of the common obstacles to adopting comprehensive cyber risk management:

• Educate Your Team: Address misconceptions about cyber risks through regular training and phishing simulations. Empower employees to become an active part of your defense strategy.
• Adopt a Holistic Approach: Cyber risk management should encompass both internal vulnerabilities, like employee actions, and external threats.
• Embrace Proactive Partnerships: Work with insurers and risk mitigation providers to create a tailored plan for your organization’s unique needs.

Collaboration plays a key role here. By pooling resources and expertise, even smaller organizations can access advanced tools and best practices.

Looking Ahead

As the cybersecurity landscape continues to evolve, upcoming changes in legislation, particularly with the 2025 presidential transition, could have significant implications for critical infrastructure. From potential funding initiatives to increased compliance requirements, staying proactive will be essential for organizations to remain resilient.

Stay Tuned

Episode 2 of Cyber Tea will be available later this week, where we’ll dive deeper into these challenges and the innovative solutions shaping the future of cyber risk management. Whether you’re a risk pool executive, insurer, or simply passionate about safeguarding critical infrastructure, this conversation is one you won’t want to miss.

Keep an eye out for Episode 2 at www.kynd.io/cyber-tea-podcast or wherever you listen to podcasts, and get ready to explore the dynamic world of cyber risk with us!

What are your thoughts on addressing cyber risks in critical infrastructure? Join the conversation and let us know!