Birmingham, 27 October 2016Businesses ill-prepared for rising risk of cyber attack
Half of the Midlands-based businesses attending a cybercrime seminar admitted they wouldn’t know what to do in the event of a cyber attack, despite nearly two-thirds believing an attack likely. That was the chief finding of the seminar held by risk management and insurance solutions specialists Arthur J. Gallagher, in conjunction with cyber security firm Unipart Security.
85 senior level business people from companies across a host of sectors, including Food & Drink, Manufacturing, Construction and Professional Services, attended the seminar, held at the Thinktank Museum in Millennium Point. The delegates came to learn about the risk of cybercrime and what their businesses can do to protect themselves — taking part in a live interactive questionnaire to pinpoint both their level of preparedness and their level of concern.
Whilst business leaders recognise that there is an increasing risk of cyber attacks to their organisations — with 64 per cent accepting that it’s very likely or likely that their business could be targeted— almost half of the delegates (49 per cent) admitted that they wouldn’t know what the next steps were if their business suffered a cyber-attack.
The seminar underlined the fact that the cost to a business following a cyber-event can run into the hundreds of thousands, or even tens of millions of pounds for large firms with significant exposure. That’s why it’s important for businesses to understand the risk to their company and have a plan in place should the worst occur.
One of the key elements of risk management planning is having adequate protection in place. Cyber insurance can play a vital part in getting a business back up and running after a breach. However, there are many policies available, which can be confusing – some insurers have dedicated cyber products, others offer add on elements of cyber cover under existing policies, whilst certain types of cyber-attacks may be covered under an existing commercial crime policy. Although is essential to understand what business insurance is in place, only 17 per cent of delegates were certain that their policy would protect them in the event of a cyber or online financial crime incident.
Guy Mills, Managing Director of Arthur J. Gallagher’s Newhall Street-based Birmingham branch, said: “It’s clear that businesses are waking up to the real threat of a cyber-attack on their business, but what is apparent is that many are not yet equipped to deal with the aftermath, should the worst occur. It’s vital that the correct risk management planning takes place, with the help of experienced specialist advisers, and that senior management recognise the role that cyber insurance can play in getting a business back on its feet.”
For advice on how to ensure your business is adequately covered in the event of a cyber-attack, visit www.ajginternational.com/expertise/cyber for further information.