Cyber risk is outpacing many companies’ ability to respond, and cyber insurance alone can’t close the gap. Security leaders need people and tools to effectively secure an increasingly connected enterprise.

As attack surfaces expand and threats multiply, security teams are stretched thin. At the same time, the cost of transferring risk is rising. With climbing premiums and tighter coverage, even well-funded organizations can’t rely solely on insurance and must adopt proactive risk management to prevent catastrophic losses.

Arthur J. Gallagher and Co. projects the global cyber insurance market will nearly double by 2027, reaching $29 billion as more companies turn to insurers to share the burden. However, increased demand has made coverage harder to navigate, with more exclusions, stricter underwriting and growing accountability for security leaders, making it difficult for teams with limited resources.

“Many CISOs know they’re not keeping pace with the rate at which teams across entire organizations are adopting new technology,” said Jackie McGuire, senior analyst at theCUBE Research. ”Securing the modern enterprise itself is challenging. Securing budget for the resources to do that important work, however, requires not just technical rationale, but the ability for security leaders to think strategically and tie security outcomes to enterprise (read: revenue) outcomes. Influencing security policy, budget and culture is an art and requires stepping out of a technical mindset and creating a common language to center the discussion on outcomes. For most leadership teams, risk is that common language.”

That focus on risk and outcomes sets the stage for theCUBE Research’s exclusive “The ART of Security Summit: Strategic Risk Management for CISOs” digital event, streaming on April 24. The Summit is set to explore how CISOs can rethink risk management in 2025 — from partnering with managed service providers to reevaluating the role of cyber insurance. Join theCUBE, SiliconANGLE Media’s livestreaming studio, to hear from industry-leading speakers who will talk about the decisions that define a strong risk posture — and how to make better ones even under pressure. (* Disclosure below.)

Check out what’s in store for theCUBE’s coverage of The ART of Security Summit:

Avoid, reduce and transfer: A more innovative way to manage cyber risk

Security leaders may have plenty of tools, but without a clear strategy, those tools don’t add up to real protection. The ART framework offers a simplified yet powerful approach to tackling today’s risks, according to McGuire. This structure helps CISOs and their teams stay agile, make decisions under pressure and communicate risk posture clearly across the business.

“The ART of cybersecurity risk management — Avoid, Reduce and Transfer — is most effective when applied in tandem,” McGuire said. “Avoid what you can with strong training, policies and technology. Reduce remaining risks by leveraging managed services, continuous monitoring and solid backup strategies. Transfer residual risk through insurance and contractual protections to safeguard your bottom line.”

But even strong preventive controls have limits. The ability to reduce damage after an incident relies heavily on an organization’s talent, partnerships and response plans, according to McGuire. That’s where managed services can make a difference: They go beyond reactive fixes to offer continuous monitoring, proactive patching and hands-on recovery support.

“For organizations with more complex security needs, [managed security service providers] take risk reduction a step farther, focusing specifically on cybersecurity,” she said. “They can manage firewalls, [security information and event management] solutions, endpoint, network and cloud detection and 24/7 threat monitoring.”

How cyber insurance providers are reshaping risk transfer

Transferring the burden becomes essential when risks can’t be avoided or reduced. That final pillar of risk strategy — transfer — will be a key theme at the summit as organizations seek financial and contractual safeguards against escalating threats. Insurance, outsourcing and strong service-level agreements are among the ways organizations can share risk, McGuire explained. While they don’t remove the need for internal controls, they offer a financial backstop when the inevitable happens.

“Cyber insurance covers costs such as legal fees, breach notifications, data recovery and even ransom payments in some (increasingly rare) cases,” McGuire said. “Bundling coverage with managed services can be more affordable than purchasing standalone cyber insurance, especially for [small-to-medium businesses] with limited budgets.”

Newer cyber insurers are reshaping what risk transfer looks like in practice. Cowbell Cyber Inc., a provider focused on small and midsize businesses, uses more than 1,000 data points to generate a Cowbell Factor — a risk score that helps organizations strengthen their cybersecurity posture and secure better insurance terms. Its cloud-based dashboard highlights weak points in real time, from exposed cloud backups to unprotected endpoints, offering a clear roadmap for remediation before renewal.

Fixing those weak points can lead to more favorable insurance terms. Cybersecurity improvements sometimes unlock lower deductibles when a policy comes up for renewal. Cowbell can also extend coverage to include more types of breaches. The company sees itself as a provider and a pioneer in modernizing cyber insurance for a new era of risk, according to Jack Kudale, founder and chief executive officer of Cowbell.

“We launched the insurance industry’s first-ever continuous underwriting platform that aligned insurable threats to risk exposures to proactively mitigate losses in the aftermath of cyberattacks,” he said in a statement. “Today, our journey has set us up to lead the next wave of innovation in the cyber insurance industry.”

Cyber risk isn’t going anywhere, but smarter strategies can help CISOs stay ahead. At “The ART of Security Summit,” those strategies come into focus — grounded in real-world tools, partnerships and evolving approaches to coverage. Join theCUBE Research for our exclusive coverage.

TheCUBE event livestream

Don’t miss theCUBE’s coverage of “The ART of Security Summit” event on April 24. Plus, you can watch theCUBE’s event coverage on-demand after the live event.

How to watch theCUBE interviews

We offer you various ways to watch theCUBE’s coverage of “The ART of Security Summit: Strategic Risk Management for CISOs” event, including theCUBE’s dedicated website and YouTube channel. You can also get all the coverage from this year’s events on SiliconANGLE.

TheCUBE Insights podcast

SiliconANGLE also has podcasts available of archived interview sessions, available on iTunes, Stitcher and Spotify, which you can enjoy while on the go.

SiliconANGLE also has analyst deep dives in our Breaking Analysis podcast, available on iTunes, Stitcher and Spotify.

Guests

During “The ART of Security Summit”, theCUBE analysts will talk with industry-leading speakers who will discuss the decisions that define a strong risk posture — and how to make better ones even under pressure. Don’t miss all the insights.

(* Disclosure: TheCUBE is a paid media partner for “The ART of Security Summit: Risk Management for CISOs.” The sponsors of theCUBE’s event coverage do not have editorial control over content on theCUBE or SiliconANGLE.)

Image: SiliconANGLE