Most corporate executives see cyberattacks as a major risk for companies

Nowadays, the threat of cyberattacks has become the major risk for business companies.

According to a study by insurance consultancy Marsh and Microsoft, company executives are more afraid of cyber threats than economic uncertainty, brand damage, or legal regulation.

A survey of more than 1,500 directors showed a rapid change in perceived risks for their organizations. According to the survey, the presence of a cyber insurance policy this year has become more common than in 2017.

In 2017, 62% of respondents considered cyber attacks as one of the 5 most dangerous threats, and this year this indicator increased to 79%. The proportion of respondents who consider cyber attacks as number one threat also increased from 6% to 22% in two years.

“Cyber risk has moved beyond data breaches and privacy concerns to sophisticated schemes that can disrupt entire businesses, industries, supply chains, and nations, costing the economy billions of dollars and affecting companies in every sector. he hard truth organizations must face is that cyber risk can be mitigated, managed, and recovered from, but it cannot be eliminated”, — conclude Marsh и Microsoft researchers.

According to AIG insurance company, the most common and costly cyber threat is BEC attacks (business email compromise). BEC attacks related insurance claims account for 23% of all claims in the EMEA region (Europe, the Middle East and Africa). The following on the list is ransomware.

According to a study by Marsh and Microsoft, over the past two years, the number of organizations with cyber insurance has grown from 34% to 47%. 89% of respondents are sure that their cyber insurance policy can cover the damage from a cyber attack.

“Despite the decline in organizational confidence in the ability to manage cyber risk, we are optimistic that more organizations are now clearly recognizing the critical nature of the threat, and beginning to seek out and embrace best practices”, — researchers of Marsh и Microsoft report.

Effective cyber risk management requires a comprehensive approach employing risk assessment, measurement, mitigation, transfer, and planning, and the optimal program will depend on each company’s unique risk profile.