Disclaimer: The views and opinions expressed by the author(s) do not represent the official position of Barbados TODAY.
By Steven Williams
Last week, I touched on a few areas that I believe will drive local business technology in 2024 and beyond, such as cybersecurity compliance. This area has seen astronomical growth globally, especially given modern Data Privacy laws and, more recently, the Biden Administration’s 2023 National Cybersecurity Strategy (US Cybersecurity Strategy).Â
The US Cybersecurity Strategy, emphasising the defence of critical infrastructure, disruption of cyber threats, and establishment of international partnerships, signifies the increasing global importance of cybersecurity. This international focus necessitates that those Barbadian businesses actively involved in global trade and digital interactions align with international cybersecurity standards. Such alignment not only mitigates risks but also opens new avenues for business opportunities for globally minded entities that prioritise cybersecurity. The US policy clearly demonstrates that cybersecurity concerns are no longer confined to national boundaries but are a critical aspect of international business relations and practices.
In the realm of data privacy and cybersecurity, the primary goal is to effectively manage risks associated with data use and business technology. This extends beyond mere adherence to security protocols and compliance with regulations; it encompasses a broader approach to mitigating risk. Central to this approach is Cyber Risk Insurance (CRI), a significant tool for managing cybersecurity risks. CRI provides more than just a financial cushion against losses from cyber incidents such as data breaches, system damages, business interruptions, and compliance penalties. It also serves a proactive function in the cybersecurity landscape. By requiring insured entities to maintain high standards of cybersecurity as a precondition for coverage, CRI influences businesses to prioritise and elevate their cybersecurity measures, thereby shaping overall practices in data privacy and security.
If businesses in Barbados and across the region wish to be competitive, they will need to elevate their cybersecurity standards, aligning them with best practices and compliance mandates, which can be time-consuming and, yes, costly. The obvious question would then be, why would businesses in Barbados or across the region, for that matter, feel the need to invest in CRI specifically; ‘is the juice really worth the squeeze?’ The answer lies in the multifaceted benefits that
CRI offers, making it a strategic investment rather than a mere cost.
Enhanced Credibility and Trust: CRI demonstrates to the international business community that a business in Barbados takes cybersecurity seriously. This assurance can build trust, particularly in industries where data security is critical.
Risk Mitigation for Partnerships: When businesses in Barbados partner with extra-regional companies, they often share sensitive information. CRI acts as a safety net, reducing the risk to the larger business in the event of a data breach or cyber incident.
Compliance and Regulatory Assurance: Businesses with CRI are often more compliant with data protection regulations, such as the Barbados Data Protection Act 2019 because to qualify you have to comply. This compliance is a strong selling point, especially to larger businesses in heavily regulated industries such as the financial services sector.
Financial Stability and Reliability: CRI indicates that a business is prepared for the financial implications of cyber incidents. This preparedness signals stability and reliability, key qualities for multinationals seeking dependable partners within the region.
Competitive Edge in Bids and Contracts: In contract negotiations that demand stringent data security measures, CRI can demonstrate a competitive edge over others without such insurance, especially when bidding for government contracts.
Enhanced Cybersecurity Posture: To qualify for CRI, businesses generally bolster their cybersecurity measures, enhancing their overall security and attractiveness as potential business partners.
Faster Recovery from Cyber Incidents: With the support of CRI, businesses can recover more swiftly from cyber incidents, minimising operational downtime and disruption. This quick recovery is crucial for businesses reliant on the dependability of their partners and supply chain.
Thus, investing in CRI is not just about managing risks; it’s about seizing opportunities to foster trust, compliance, stability, and competitiveness in the global business arena, making it an invaluable asset for businesses in Barbados and the wider region.Â
Last December, at the Barbados Chamber of Commerce luncheon, Prime Minister Mottley addressed the business community, challenging them to look beyond the confines of our small market and seek opportunities outside the region.Â
A critical aspect of competing for international business is compliance with the legislation of target countries. CRI plays a pivotal role in this compliance, ensuring that businesses from Barbados can meet international standards for data protection and cybersecurity.Â
This not only opens doors to new markets but also positions Barbadian businesses as credible, reliable, and secure partners in the global economic landscape. Therefore, the investment in CRI transcends local business operations, serving as a key enabler for regional businesses to engage with larger, international markets confidently and successfully.Â
Steven Williams is the executive director of Sunisle Technology Solutions and the principal consultant at Data Privacy and Management Advisory Services. He is a former IT advisor to the Government’s Law Review Commission, focusing on the draft Cybercrime bill. He holds an MBA from the University of Durham and is certified as a chief information security officer by the EC Council and as a data protection officer by the Professional Evaluation and Certification Board (PECB). Steven can be reached at: Mobile: 246-233-0090 Email: steven@dataprivacy.bb
