PINS S6.4 What is technology risk?

(1) Technology risk is risk:
(a) that arises from the use of communication information technology infrastructure; and
(b) that generates events that may lead to the disruption or damage of an insurer's information systems or data.
(2) Technology risk is determined by the type and nature of threats targeting and affecting the insurer's environment. Insurers rely heavily on technologies such as the internet and applications. In a highly interconnected and market-driven world, an insurer should have a reliable, flexible, complete and integrated set of operating processes to deal with technology risks.
Inserted by QFCRA RM/2013-1 (as from 1st January 2015).