In the business world, barely a week goes by without a major cyber incident happening. To help guide businesses toward cyber preparedness, Hiscox has come out with its 2019 Cyber Readiness Report.
This year’s report shows that of the companies surveyed, most experienced one or more cyber attack in the past year. The cost and frequency of these attacks have increased significantly, as well as the risks involved for small and medium sized companies.
Ironically, the number of businesses that qualify as having expert readiness has declined from last year.
More businesses report being impacted by a cyber incident year-on-year, the cyber risk seemingly indiscriminate to a business’ size or sector. Nearly a quarter of companies reported a virus or worm infestation and 17% reported a ransomware attack.
Along with the number of incidents reported, the frequency of attacks has also increased markedly. Bigger companies are more likely to suffer from repeat incidents, with 21% experiencing five or more attacks in the year.
With this increase in vulnerability, businesses have started taking a more structured approach toward addressing the problem, with a defined role for managing cyber security and strategy.
Businesses are strongly encouraged to adopt rigorous and effective measures to minimize the cyber threat. Because it’s important to respond correctly to cyber threats, businesses should follow these guidelines.
Appoint a cyber head
The proportion of businesses that don’t have a defined role for cyber security is half of what it was last year, decreasing from 32% to 16%.
Respond positively to incidents
More firms are starting to respond to security incidents with concrete action. Last year, 47% of businesses said they had changed nothing following a cyber security incident. In 2019, that figure has fallen to 32%. Taking action against a threat such as cyber threats is a necessity.
Less complacency, more realism
Businesses are less confident in the efficacy of the security measures they’ve put in place. Most likely, this is in response to the rising cyber threat and the reality of the need to adapt.
As the number of businesses effected from cyber threats grows, so does the awareness and demand for cyber insurance. Every cyber attack is different, and cyber insurance offers a range of expert services such as lawyers, IT professionals, PR Consultants, and more. Further, cyber insurance offers protection for financial losses suffered, whether through lost business or third-party claims.
Preparing your business for cyber threats is no longer optional – it’s a necessity. The number of threats is only growing, making it important that every business have the necessary protection in place. Prevention is much easier than cure.
An AssuredPartners Agency
In February 2020, Molyneaux Insurance joined AssuredPartners, the 11th largest insurance brokerage in the U.S. This partnership provides us access to additional capital and a national footprint that enables us to continue to negotiate the most favorable coverage terms and conditions for our clients, and allows us to provide an even broader spectrum of risk management support services.