Results of a 2015 Global Risk Management survey conducted by Aon shows threats to companies’ reputations and cyber risk rank high among business leaders’ top risk concerns. The connection between these two risks has been felt around the world in 2014, as a rash of data breaches demonstrated the fragile nature of consumer trust in leading corporations, especially when they suspect the company is not protecting itself or the customer’s personal data.
Highlights from the findings:
- Reputation damage, the top-ranked risk in this year’s survey, can result from a number of factors, including a security breach
- Risk management professionals around the globe are grappling with significant challenges, including cybersecurity, insuring against cyber attacks, and a growing interdependence of all risks.
- Cyber risk entered the top 10 at number 9, ranking higher in North America. Cyberattacks can damage companies in a number of ways, linking the threat to other risks on the list.
Of particular concern from a risk management perspective is the number of exposures on this year’s list that are not traditional insurable risks, showing the need for organizations to skillfully evaluate and address both existing and emerging exposures. Among the challenges for insurers is the mercurial nature of cyber risk, which is “fast-moving, impossible to predict, and difficult to understand.” Yet, the damage can be immense.
These constantly evolving and interconnected challenges have made risk management a necessity for survival and a key driver for success in this diverse, competitive, and fragile marketplace. Technology plays a key role in risk management best practices?
Do you have the right program in place to reduce the frequency and severity of cyber risks in your organization? Contact ACE IT Solutions at 646.558.6358 to schedule a consultation.