Aon: Cyber risks can impact firms even from unexpected angles

Aon: Cyber risks can impact firms even from unexpected angles | Insurance Business Asia

Aon: Cyber risks can impact firms even from unexpected angles

A new report from Aon warns organizations that cyber risks can come from any digital channel – even those channels considered “less appreciated.”

Aon’s 2020 Cyber Security Risk Report, entitled “Solving the Cyber Puzzle: The Unexpected Ways Cyber Risk Impacts Your Business,” identifies six non-standard areas of concern that organizations must pay attention to when it comes to cyber risk. Those six areas are: intellectual property, mergers & acquisitions, retirement, executives, computer crime, and the corporation itself.

Selected highlights of the report include:

  • Intellectual property theft is estimated to cost US$1 trillion globally a year. Notably, intangible assets (such as IPs) make up 80% of the value of S&P 500 companies.

  • Less than 10% of M&A deals globally include specialist cyber security due diligence.

  • Nearly a quarter of trustees of UK pension schemes have no training in cybercrime risk. Also, organizations typically hold false confidence in the security of retirement data.

  • C-level executives are 12 times more likely to be pursued by cyberattacks. Thus, organizations must secure their executive team outside of physical and digital walls.

  • Business email compromise and/or email account compromise resulted in over US$12 billion in global losses in less than five years. According to Cybersecurity Ventures, which Aon cited in its research, global ransomware damage is anticipated to reach US$20 billion in 2021.

  • Public companies are accountable for disclosure of cyber risk. Similarly, an organization’s board of directors is “increasingly liable” for cyber security through fiduciary duties. Companies can also risk facing class actions, regulatory fines, and costs related to investigations following a cyber breach incident. Cyber risk – as a form of corporate risk – is also directly tied to balance sheet impact.