August 2026 Volume 8

OPERATIONS & MANAGEMENT

Conclusion Cyber risk is no longer just an IT concern. It is a business interruption issue, a supply chain issue, and increasingly an insurability issue. Organizations that combine strong cybersecurity controls, cyber preparedness, effective response planning, and appropriate cyber insurance will be best positioned to recover from future incidents. Katie Hensley, AIC Risk Management Consultant

5. The Cloud Shifts Responsibility. It Does Not Eliminate It. Cloud providers secure infrastructure, but organizations remain responsible for identities, applications, data protection, and incident response. 6. Your Supply Chain Can Become Your Weakest Link. Forgers routinely exchange engineering documents, specifications, certifications, and quality records. A cyber incident affecting a supplier, software vendor, or logistics partner can disrupt Attackers may compromise smaller organizations and remain undetected while transactions progress. Cybersecurity reviews should carry the same weight as financial and legal due diligence. 8. Business Interruption Is Often the Largest Loss. For many manufacturers, the greatest impact of a cyber event is lost production rather than stolen data. 9. Cyber Insurance Is More Than a Financial Tool. A quality cyber policy provides access to specialized experts and recovery resources that most organizations do not maintain internally. 10. Cybersecurity Is Becoming an Insurability Issue. Underwriters increasingly evaluate multi-factor authentication, employee training, backups, incident response planning, monitoring, vendor management, and governance controls. Preparedness can directly influence coverage and pricing. operations throughout the supply chain. 7. Acquisitions Create New Exposure.

Cottingham & Butler Phone: 563-581-2244 Email: kahensley@cottinghambutler.com

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FIA MAGAZINE | AUGUST 2026 45