Cyber incidents ranked in top three risks for businesses

Cyber attacks and data breaches have become one of the biggest risks in any industry, due to compromising sensitive data and causing a massive financial hit to companies worldwide.

According to new data presented by Buy Shares, more than 40% of companies feel threatened by cyber incidents and find it the most concerning business risk in 2021.

Business Interruption, Pandemic and Cyber Incidents Top Three Risks for Businesses

According to the Allianz Risk Barometer survey, business interruption tops the charts as the leading business risk in 2021. Statistics show this risk has been in the number-one spot seven times over the last decade, and in this report, 94% of surveyed companies disclosed a COVID-19 related supply chain disruption last year.

The pandemic outbreak has climbed 15 spots to become the second-most significant business risk, with 40% of companies worrying about this kind of uncertainty. Cyber incidents ranked as the third-largest business risk globally, primarily due to the pandemic-fuelled rush towards digitalisation. 

According to the survey, businesses all over the world recognise cybercrime as a more significant problem than loss of reputation, macroeconomic developments, and political risks.

“Displaced workforces create new opportunities for increasingly well-organised and funded cyber criminals to exploit and gain access to networks and sensitive information,” says Georgi Pachov, Head of Portfolio Steering and Pricing at AGCS. “At the same time the potential impact from human error or technical failure incidents – already one of the most frequent drivers of cyber insurance claims – may also be heightened.”

Global Spending on Cybersecurity 

Last year, consumers, businesses, and organisations worldwide spent over $120bn on cybersecurity products and services, $8bn more than before the pandemic struck. The Statista survey showed this figure is expected to grow by 10% YoY to $131.8bn in 2021.

Cybersecurity services, like data risk analysis, data masking, and vulnerability discovery, are the largest and the fastest-growing sector of the entire market expected to reach a $61.4bn value this year.

Cybersecurity software and hardware follow with $44.3bn and $26bn in revenue, respectively. By 2025, the global cybersecurity revenues are forecast to touch $210bn.