Cyber risks rate as top emerging risk for SMEs

Cyber risks rate as top emerging risk for SMEs | Insurance Business

Cyber risks rate as top emerging risk for SMEs
A Marsh survey into data and cyber key risk concerns for New Zealand businesses has found cyber risks rating as the number one risk for SMEs and number two across all businesses.

The sixth biennial Survey of Risk found disruption to a business following a major IT disruption (eg server overheating, software failure etc) and loss of data, data corruption or failure of systems security or website security (hackers etc) came in at number two and three respectively.

Number one was disruption to a business following a major incident such as fire, earthquake, flood or act of terrorism.

Country head of Marsh New Zealand, Grant Milne, said: “In the current age, it would be extremely challenging to run any organisation without some reliance on IT.

“Making sure that you protect your systems and client data is therefore not only a critical business task but also hugely important in protecting your reputation and brand.”

While the survey found organisations are reviewing their risk more than ever before, with 60% of survey respondents saying they are reviewing risk more than they were two years ago, 31% said they still did not have a plan in place to manage cyber risk.

“Cyber risk and cyber-attack is something that we are hearing about a lot more often,” said Milne.

“Whether your organisation is a large corporate or an SME you are not immune. Given that traditional liability policies do not cover cyber risks it is something that you should be talking to your risk advisor and insurance broker about.”

To read the full report click here.