The vast majority of company board members across the world believe their firms should spend more money on cyber security, a new global survey has found.
The research by Willis Towers Watson (WLTW) reveals that large firms typically spend around 1.7% of revenues on cyber resilience, but that 96% of board members don’t think it is enough.
The findings also show that just 13% of executives believe their organisations are performing “above average” when incorporating the lessons from cyber attacks into resilience strategies.
In addition, it was found that European firms believe a dedicated ‘cyber group’ should manage the risks, while North American, Asian and UK companies think the “board as a whole” should.
“It’s important for companies to understand that achieving cyber resiliency is a company-wide imperative,” WLTW global head of cyber risk, Anthony Dagostino, said.
“The c-suite should set the tone within their organisations by empowering stakeholders, such as IT, risk, HR, legal and compliance to drive an integrated risk management and resiliency strategy.”
Over 450 companies took part in the survey, which found that North American firms spend approximately 2-3% of revenues on cyber resilience – more than in any other region.
Despite this, it was found that UK firms had the highest rate of perceived cyber resilience of the companies studied.
The research also shows there is little consensus on how to allocate cyber budgets, although many executives cited “IT talent acquisition”, and “skills training” as spending areas.
“While technology will remain a crucial defence, more than half of cyber incidents are attributable to employee behaviour and talent deficits in cyber security role,” Dagostino said.
“So investing in other areas, such as human capital solutions and cyber insurance, has to become part of regular board and c-suite conversations.”
Investors should brace for an imminent collapse in the entire cryptocurrency market following a steep decline in the value of Bitcoin over the last year, a new study from Juniper Research has warned.
12 October 2018
Insurance companies and banks have successfully prevented eight in ten cyber attacks on their organisations this year, up from approximately two in three over 2017.
02 October 2018
Nearly two-thirds of large businesses with over 10,000 staff are looking to deploy new blockchain projects, up from around half last year, a new survey has found.
18 September 2018
Why InsurTech? A Pressured Insurance Value Chain
By Andrew Sagon, Andrew Johnston and Matthew Wong
InsurTech is a burgeoning phenomenon that is modernising the insurance industry. It is disrupting the traditional value chain whereby insurers offer loss protection, and shifting the emphasis to risk mitigation. Incumbents face disintermediation as investors in search of higher yields pour money into insurance-linked instruments in the capital markets. And entrepreneurial businesses are targeting friction costs and inefficiencies within every aspect of the traditional value chain.
Nimbleness and agility will unlock potential
By Elinor Friedman, Andrew Harley and Klayton Southwood
Recent Willis Towers Watson surveys in the U.S. have shown that P&C and life insurers in developed markets are taking seriously the potential of big data and predictive analytics to improve their businesses. Nimbleness and agility, rather than brute force, are likely to be key to realizing that potential.
Driven by technology, toolkits and talent
By Claudine Modlin and Graham Wright
Advanced analytics is helping some insurers offer innovative products and solutions. What do insurers need to know about the changing nature of analytics and whether it is worth the investment? Claudine Modlin and Graham Wright discuss technology, toolkits and talent — topics that may help you decide.
Risk transfer is part of a comprehensive solution
By Adeola Adele, Patrick Kulesa, Kevin Madigan and Alice Underwood
Given the dynamic nature of cyber-risk, taking a multidimensional approach that integrates board governance, technology solutions, behavioral change and risk transfer solutions can help reduce risk to a manageable level.