Business interruption from cyber incidents ranks as a major threat to companies of all sizes and sectors through 2018, according to recent Allianz Risk Barometer, which surveyed 1,900+ risk experts from 80 countries.
The survey was published by insurance and risk management provider Allianz Global Corporate & Specialty (AGCS).
“Every company has been or will be impacted by cyber risk. It is not over-hyped. If anything it is under-appreciated because the threats are not always well understood,” said Emy Donavan, Global Head of Cyber at AGCS. Over 50% of Risk Barometer responses ranked cyberrisk as underestimated by businesses, she noted. “There are now multiple cyber threats to a company’s digital presence.”
Cyber incidents include cybercrime, IT failure, human error, and data breaches. Cyberrisk is defined as the potential loss to a business resulting from a cyber-related incident. Cyberrisk is complex and ever-changing.
Other company concerns revealed in the survey included:
- Loss of reputation or brand value from crisis spreading fast in media coverage
- “Cyber hurricane” events in which attackers can disrupt larger numbers of companies by targeting internet infrastructure dependencies
- Loss of trust among stakeholders if sensitive data is compromised
- Strict data protection rules that increase cyberrisk considerations
- Emerging risks and liabilities arising from new technologies
“Cyber incidents is the most feared BI trigger for the first time. BI is also the main cause of economic loss for businesses after a cyber incident. Cyber BI incidents are increasing, resulting from [attacker] attacks, such as ransomware incidents, but more frequently from technical failures and employee error,” according to report.