India, Nov. 22 -- Cyber risk is one of the, if not the, most critical risk factors confronting companies in today's world of interconnected digital communication systems. Unfortunately, the frequency and magnitude of cyber breaches are increasing at an alarming rate. As a result, large companies (e.g., publicly traded corporations) are spending millions of dollars annually on cybersecurity-related activities designed to prevent potential cyber breaches and to identify any actual breaches.

These activities include data encryption, purchasing sophisticated cybersecurity software and hardware, and hiring cybersecurity experts. In addition, a major cyber breach in a large company usually results in costly recovery activities that include hir...