Dive Brief:
- Potential cyber incidents and business interruption remained the two leading worldwide corporate risk concerns for the second year in a row, according to a report published Tuesday by Allianz Group’s corporate insurance unit, Allianz Global Corporate & Specialty.
- Both cyber and business interruptions were the top concerns among 34% of respondents in the annual Allianz Risk Barometer. The study measured the responses of 2,712 risk management experts in 94 countries and territories, including CEOs, risk managers, brokers and other insurance experts.
- Respondents were concerned about a range of potential incidents, from ransomware to data breaches and IT outages. The report noted ransomware remains a frequent threat and cited IBM data showing the average cost of a data breach hit a record of $4.35 million, with the cost expected to surpass $5 million this year.
Dive Insight:
The report shows cybersecurity risk has been elevated to the most senior levels of corporations around the world.
The potential threat of ransomware and data breaches has gained the attention of worldwide corporations. Companies confront the potential loss of control over customer data or proprietary customer secrets, and the impact of an attack on their brand reputation.
The cost of cybercrime reached about $1 trillion worldwide, the equivalent of about 1% of global GDP, the report said. Cyber incidents are considered the top risk in 19 countries, including France, Japan, India, the U.K. and Canada.
Data breaches remain an increasing concern, in part due to the tighter regulations surrounding the protection of customer data. In addition, ransomware has become a much more serious concern, particularly as threat actors engage in double and triple extortion against companies in a way that threatens to do reputational harm.
“So whether that’s customers, whether that’s other people in the supply chain, we see this now as the norm that those attacks will not only impact the company itself, but anyone else along the value chain,” Shanil Williams, a board member and chief underwriting officer corporate at Allianz Global Corporate & Specialty, said Tuesday during a media presentation.
