Cyber glossary
What is a Supply Chain Attack?
A cyber attack that targets vulnerabilities in third-party software or service providers to compromise downstream organisations.
Definition
Supply Chain Attack
A cyber attack that targets vulnerabilities in third-party software or service providers to compromise downstream organisations.
Example
How it works in practice
A widely used IT management platform is compromised, and attackers push a malicious update to 18,000 organisations. Hundreds of companies suffer data breaches through the single point of compromise. Cyber insurers covering these companies face simultaneous claims, creating the same type of correlated loss event that cat bonds are designed to transfer to capital markets.
Related terms
Related glossary entries
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Calculation AgentILSCat BondILSCatastrophe ModelRisk ModellingCCRIF (Caribbean Catastrophe Risk Insurance Facility)ILSCedantReinsuranceCoCo (Contingent Convertible)CreditCollateralILSCollateralised ReinsuranceILSConditional Expected Loss (CEL)ILSCorrelationILSCouponILSCoupon DeferralCreditCyber Cat BondCyber
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ESGILSExhaustion PointILSExpected Loss (EL)ILSExpense LoadILSExposureGeneral InsuranceExtension RiskILS
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IBRD (International Bank for Reconstruction and Development)ILSILW (Industry Loss Warranty)ReinsuranceIndemnity TriggerILSIndustry Loss Index TriggerILS
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Mark-to-MarketILSMark-to-ModelILSMaturityILSMEL (Multiple of Expected Loss)ILSModelled Loss TriggerILSMoral HazardGeneral Insurance
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Parametric TriggerILSPCS (Property Claims Services)ILSPeak PerilILSPerilGeneral InsurancePERILS AGILSPremiumGeneral InsuranceProbability of First Loss (PFL)ILSProbable Maximum Loss (PML)Risk ModellingProportional PayoutILS
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RansomwareCyberReg SILSReinsuranceReinsuranceResilience BondILSRetrocessionReinsuranceReturn PeriodRisk ModellingRisk LoadILSRisk-Free RateCreditRoadshowILSRT1 (Restricted Tier 1)CreditRule 144AILS
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SCR (Solvency Capital Requirement)General InsuranceSeasonalityILSSecondary MarketILSSharpe RatioILSSidecarILSSilent CyberCyberSOFRILSSolvency IIGeneral InsuranceSpecial Purpose Vehicle (SPV)ILSSpreadILSStructuring AgentILSSubordinated DebtCreditSupply Chain AttackCyber
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