Cyber risk is now second biggest worry of firms – yet majority also unprepared
Cyber risk is now the second biggest concern across all business sizes and industries, and the percentage of businesses reporting they have been the victim of a cyber attack has doubled, according to the latest results of the 2018 Travelers Risk Index complied by The Travelers Companies.
Yet despite all this and the fact that 52 percent of respondents believe that suffering a cyber attack is inevitable, a majority of those surveyed also admitted they not taking adequate steps to protect themselves.
In the survey of more than 1,200 business leaders representing a range of industries and company sizes, 91 percent reported being confident their companies have implemented best practices to avoid a cyber event.
But the same leaders also indicated that: 55 percent have not completed a cyber risk assessment for their businesses; 62 percent have not developed a business continuity plan; 63 percent have not completed a cyber risk assessment on vendors who have access to their data; and 50 percent do not purchase cyber insurance.
“Cyber risks carry serious consequences for any business, threatening everything from revenue to operations,” said Tim Francis, enterprise cyber lead at Travelers. “These findings reveal some surprising things about how companies view their cyber exposures, their relative confidence in dealing with them and the clear opportunity that exists for them to be better prepared for a cyber attack.”
Over the past few years, multiple third-party reports have shown that small businesses suffer the majority of cyber attacks, yet these businesses are the most likely to report not having cyber insurance coverage. Although small businesses may be a frequent target, 74 percent of survey respondents from small businesses said they did not purchase cyber insurance.
Three-fourths of businesses surveyed admit that it is difficult to keep up with the ever-changing cyber landscape, evolving information and new digital developments. To assist businesses of all sizes, Travelers provides a range of coverage options, pre-breach tools and assessment resources, and post-breach services to help businesses prepare and recover quickly if and when a cyber event occurs.
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