Security Incidents Major Disruptor of Business Operations

Recently, Allianz Insurance released its Risk Barometer for 2018 (PDF), which surveyed more than 1,900 risk management experts from more than 80 countries. The survey covered Allianz customers, insurance brokers, risk consultants, underwriters, executives and surveyors. The poll was carried out in October and November 2017.

Service Interruptions and Security Incidents go Hand-in-Hand

Businesses from small to multinational companies were asked to name their top concerns. For the sixth time in a row, service interruptions made it to the first place with 42% of all polled.

“For the first time, business interruption and cyber risk are neck-and-neck in the Allianz Risk Barometer and these risks are increasingly interlinked,” said Chris Fischer Hirs, Chief Executive Officer, AGCS.

“Whether resulting from attacks such as WannaCry, or more frequently, system failures, cyber incidents are now a major cause of business interruption for today’s networked companies whose primary assets are often data, service platforms or their groups of customers and suppliers.”

With today’s continuous progressions in business digitization, companies see a strong link between business interruptions and cybersecurity incidents. So, according to 40% of all those polled, the risk of cybersecurity incidents is considered the second most important issue businesses are facing today. Only five years ago, cyberattacks were listed in 15th place on the risk rating chart.

In Europe, pressure will also increase, as the European General Data Protection Regulation (GDPR) will become effective on 25 May 2018. It seems that smaller and mid-sized companies became more aware of cybersecurity risks over time.

Refocusing from Risk Identification to Prevention

The insurance industry is adapting to the increased recognition of cyber threats, but not necessarily at the same pace as these threats are increasing. Establishing expertise, integrating cyber risk into existing offerings, and adding new products is taking some time.

But (Read more...)

*** This is a Security Bloggers Network syndicated blog from Cylance Blog authored by Cylance Blog. Read the original post at: