October 01, 2015
Cyber Tip of the Week: Cyber Risk Stats
According to the Insurance Journal, cyber risk now costs the global economy $445 billion each year. $108 billion of that comes from the U.S. Allianz’s new white paper, “A Guide to Cyber Risk” has about 50% of this $445 billion the cost to the world’s top ten economies. No one is safe anymore. As has been seen in the media, governmental and corporate data breeches have been growing in recent years.
Top Risks That Businesses are Least Prepared For
Cyber Risk – 29%
Business interruption and supply chain – 18%
Natural catastrophes – 16%
Political/social upheaval – 7%
Terrorism – 6%
As you can see, cyber risk is the MOST underestimated. It’s hard for smaller businesses to realize that their businesses are just as enticing to criminals; however, small and medium businesses are the ones most likely to not have countermeasures in place to cope with cyber crimes.
Cyber Risks That Cause Most Economic Loss
According to the Allianz Risk Barometer 2015:
Loss of reputation – 61%
Business interruption – 49%
Damages to be paid due to loss of customer data – 45%
Loss of IP/trade secrets – 20%
Subsequent requirement from regulatory bodies – 11%
Website downtime – 9%
Notification costs – 9%
Extortion – 7%
Other – 1%
Know the stats, know your risks. Next week’s Cyber Tip will help companies get to know their cyber enemies and how they can affect a company’s growth trajectory.