By FINTECH Books Contributor, Eelco Ouwerkerk Follow: @EelcoOuwerkerk  How do organizations transfer cyber risk? When should organizations be concerned about their cyber risk exposure? The digital interconnectivity of business operations, suppliers and customers means that any organization is vulnerable to potentially catastrophic electronic data theft or sabotage. This inter-reliance between organizations and the growing prevalence of cloud computing, social media, corporate “bring your own device” policies, big data and state-sponsored espionage, has catapulted cyber risk into one of the top concerns of business leaders today. Key questions The key questions that every organization should ask is: • Can we identify and quantify the damages from a successful cyber-attack? • Beyond IT solutions, how do we protect ourselves from cyber risk? 2015 Cyber Impact Report Ponemon Institute As the overall insurance market is designing innovative solutions to address the uncertainties arising from the digital interconnectivity of business operations, some interesting developments among various industries can be found based on the 2015 Global Cyber Impact Report from the Ponemon Institute: Information assets are underinsured against theft or destruction based on the value. Despite the risk, companies are reluctant to purchase cyber insurance coverage. Fifty-two percent of respondents believe their companies’ exposure to cyber risk will increase over the next 24 months. However, only 19 percent of respondents say their company has cyberinsurance coverage. Thirty-seven percent of companies in this study experienced a material or significantly disruptive security exploit or data breach one or more times during the past two years and the average economic impact was $2.1 million. Some exposures can be transferred contractually. Marketplace evolving to provide services solution, including loss control resources, data breach coaches, dedicated claims resources, pre-approved panels of vendors and service providers to address each element of breach response. Many insurers provide cyber coverage on a primary basis including breach response coverage.