Cyber Risk Is on the Rise
The third annual Allianz Risk Barometer surveyed over 400 corporate insurance experts from more than 30 countries, asking each to identify their top concerns. For the 2014 survey, the top four risks remained the same compared to 2013. These risks are business interruption/supply chain, natural catastrophes, fire/explosion, and changes in legislation/regulation.
An alarming change in this year’s report though, was that cyber risk is on the rise. This risk roared into the top 10 biggest risks, climbing seven spots from last year to rank eight among corporate insurance experts’ concerns. Regarding this rise, global head of fidelity Nigel Pearson, Allianz Global Corporate & Specialty, says, “There is now a general understanding among people who are not IT specialists that this is an emerging risk.”
Pearson always says that IT security isn’t enough to address this risk. “A comprehensive set of information and network-security policies and procedures backed by the board of directors is essential,” he says. “They also need to be properly implemented, tested, and updated on a regular basis to ensure the risk-management approach is adequate.”
Pearson believes that while noting cyber risk is on the rise, it’s also important to look at another risk that is likely correlated. That is loss of reputation and brand value, which jumped four spots from last year to place sixth among respondents’ concerns- to show that many top risks are actually interconnected.
“Industry reports indicate that if a company loses someone’s data then that person’s trust in that company diminishes. It damages their brand and reputation. This shows such risks can have a cumulative effect,” Pearson says.
Other risks that appeared in the top-10 on the Allianz Risk Barometer included: market stagnation/decline, intensified competition, theft, fraud and corruption, and quality deficiencies/serial defects.
At PLRisk, we know that all industries and companies could face the risk of a privacy or network security breach. Our coverage is the solution to helping your customers manage and protect against this risk. Please contact us at (855) 403-5982 for more information.