NEWSLETTER ARTICLE


Cyber Theft: An Underestimated Risk

 

By: Avalon Risk Management


 

Cyber theft threatens businesses large and small in a very real, tangible way. According to the Insurance Journal, cyber risk now costs the global economy $445 billion each year. $108 billion of that comes from the United States. 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 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.

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