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Losses from cyber-attacks should reach the highest level ever

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-Aon predicts that losses from cyberattacks will reach $ 6 trillion globally by 2021;
-In Portugal, cyber risk was for the first time on the list of the top five threats to companies;
-Damage to reputation and brand, falling stock prices and declining credit ratings require Executives top priority over cyber attacks;
– The increased prevalence of cyber attacks makes this risk inevitable, despite the lack of preparedness of many companies.

A new report released today by Aon plc indicates that losses from cyberattacks will reach $ 6 trillion globally by 2021. The Report on “Preparing for the Expected: Safeguarding Value in the Age of Cyber ​​Risk” further predicts that investment in cyber risk cybersecurity exceeds 1 trillion dollars accumulated in the five years prior to 2021.

According to this report, companies face severe and immediate financial losses from the procedural costs of such incidents, regulatory fines, which increased after the implementation of the General Data Protection Regulation, and revenue losses resulting from the disruption of their data. activity.

While the immediate financial costs of a cyber attack can be detrimental to businesses, the report suggests that the long-term damage to their reputation is just as worrying.

 

“The reputation crisis resulting from a cyber attack can undermine a company’s market value, destroy brand loyalty, limit digital transformation efforts and even lead to a downgrade of credit rating. An effective cyber resilience strategy can help mitigate immediate and long-term financial losses. “
-Anabela Araújo, Chief Broking Officer and Claims Director, Aon Portugal

 

Cybercrime debuts at top5 of top risks for companies in Portugal

According to another recent Aon study, cyber risk was for the first time on the list of the top five business risks in Portugal in 2019. Overall, risk managers are also experiencing a lower level of preparedness for cyber risk and there is a need to adopt risk management measures as opposed to risk transfer in order to mitigate these threats and protect organizations.

 

“Some companies still do not fully understand the impact a cyber attack can have on their business. Awareness of worst-case scenarios and their impact is crucial for developing an effective resilience strategy in which cyber is managed as a risk to and Executives should constantly strive to improve their holistic cyber risk management strategies to prevent, prepare and be able to respond to such a crisis. “
Anabela Araújo, Chief Broking Officer and Claims Director, Aon Portugal

 

The “Prepare for the Expected: Safeguarding Value in the Age of Cyber ​​Risk” Report finally identifies four steps needed to build a cyber risk-resilient organization:
– Take responsibility – Cyber ​​risk management should be a cross-company effort, but responsibility needs to be allocated to the top of the organization.

– Bringing the business together – Cyber ​​risk is not just a matter of technological and computer security. It is an enterprise-wide threat and requires a multidisciplinary, multilevel response that engages all relevant stakeholders within the organization.

– Control the process – Companies can no longer count on hiring a response team after a cyber attack. Incident response management is critical in preparing organizations, and scenario planning helps to understand operational vulnerabilities and threats.

– Protect the transaction – Companies should look at how they are taking advantage of available risk transfer opportunities. Cyber ​​insurance can help protect an organization’s balance sheet by providing post loss and pre-loss prevention services.

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