The speed of social media and its lack of accountability make it more difficult to manage the risk of online attacks, the Aon Advanced Risk Finance Conference has heard.

Aon Risk Solutions Australia Placement Director Ian Davidson says threats have spread beyond clients’ own businesses.

“In the past clients looked at what they were doing; now they are looking at suppliers and joint venture partners, from where they are getting input,” he said.

Mr Davidson says the inaction of companies has also become an issue “if you are seen to be not doing enough”.

Social media attacks can escalate quickly and are harder to manage because the outlets do not have the checks and balances of traditional media and corporations have not been able to build relationships with them.

Mr Davidson says it can be hard for clients to determine who is responsible for the risks – the IT, human resources or insurance manager?

“Clients are aware of the risk [and] they see a likelihood of it happening to them, but they are still working out the best way to manage these risks,” he said.

Aon Global Practice Leader for Cyber Insurance Kevin Kalinich says companies must break down “silos” in their organisations so different divisions can collaborate to identify risk from within, as well as from external sources such as subcontractors.

Mr Davidson says the three policies in the Australian market, offered by Chartis, Zurich and Munich Re, offer some flexibility and the products will change as the market matures.