Every business, irrespective of size has business risks. Cyber Crime is just one of the many risks businesses face each day.
However, because of increasing cybercrime and its financial impact on business and the community it is gaining prominence and is arguably, one of the main risks a business now faces.
In today’s world of connected industries and businesses, where intangible assets such as data, networks, customer relationships and intellectual property can represent a major source of value, more is at stake if things go wrong.
However, most small-to-medium enterprises (SMEs) and Commercial businesses say, “This won’t happen to me”.
Some key facts and figures relating to cybercrime.
- Cybercrime is predicted to exceed $6 trillion by 2021. (Source: Cybersecurity Ventures Research)
- Small business is the target of 43% of all cybercrimes.
- 60% of small businesses who experience a significant cyber breach go out of business within 6 months.
- 22% of small businesses that were breached by the 2017 Ransomware attacks were so affected that they could not continue operating.
- 33% of businesses with fewer than 100 employees don’t take proactive measures against cyber security breaches.
- 87% of small businesses believe their business is safe from cyberattacks because they use antivirus software alone.
- Cybercrime costs the Australian economy more than $1 billion annually.
5 Common Myths about Cyber
Without an effective combination of people, processes and governance implemented alongside technology and insurance solutions, businesses are at an increased risk of sustaining major financial damage.
Myth 1: Cyber is merely an IT issue
Reality: Cyber preparedness starts at the top and effects the entire Organisation. The responsibility for managing cyber risk should lie principally with information security practitioners, which is the highest level of management in the Business.
Myth 2: Technology solutions are a “silver bullet”
Reality: Technology can be part of the solution – but it is not the entire solution. While technology is clearly an integral part of effective cyber risk management, it may overlook the impact of human behaviour – malicious or otherwise – on cyber security. Whether it is simply employee curiosity or carelessness, these blind spots are often the weakest links in security. Increasingly, malicious tactics are designed to bypass sophisticated security technologies and exploit simple human error.
Myth 3: Regulatory compliance equals security
Reality: Regulatory compliance is the bare minimum. Various regulators around the globe are stepping in to address consumer privacy and data concerns. Compliance alone will not address cyberattacks or security compromises.
Myth 4: Only industries that house sensitive data are under direct threat
Reality: Companies of all sizes across all industries have vulnerabilities. Every organisation – regardless of size or industry – should be taking action about their specific exposures to cyber risk and to improve their overall resilience.
Myth 5: Companies can outsource a function along with responsibility and risk
Reality: Companies ultimately own the risk. Outsourcing can help but ultimately you will be responsible for ensuring proper practices and procedures are in place to protect customer privacy and data concerns. Third parties will never assume all your risk.
To discuss how Cyber Insurance plays an important part of a businesses overall Cyber-Security programme contact your BusInsure team.
The information contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice consider whether or not it is appropriate. Consider the disclosure documents, which includes our Financial Services Guide (FSG) and Product Disclosure Statements (PDS) for some products.