Incident-
On 19th March 2019, Norsk Hydro ASA, one of the world’s biggest aluminium manufacturers, has confirmed that Cyberattack affected operations. The firm detected unusual activity on its servers that disabled part of its smelting operations, leading Norsk Hydro to isolate all plants and process and switched to manual operations and procedures. Norsk Hydro has also confirmed that it has well structured Cyber Insurance Policy placed with recognised global insurers. Also, company got the interim payment of USD 20.2 million (Majorly Business interruption) of insurance compensation in relation to the cyber-attack on its operations in March, 2019.
Indicative loss amount (Till Feb 2020) – Loss exceeded $75Mn
Business Interruption period – More than 50 days***
Still, all the operations of Norsk Hydro are not working as per the past margins and required to be restored. Therefore, the company is still under the minimum losses of USD 55Mn (Still counting) and is expecting the remaining amount form Insurer.
Major Cyber Risk Exposure for Manufacturing Industry-
As revealed in Deloitte study, titled Manufacturers Alliance for Productivity and Innovation (MAPI) – Companies involved in manufacturing business are said to be more exposed to cyber attacks.
Major Cyber exposures where Norsk Hydro lost the most :–
- Business Interruption – net profit loss
- Cyber extortion & ransom demand
- Fees & expenses of Cyber Incident Response team (Forensic experts, PR agencies, Etc)