JLT and Marsh reveal the biggest cyber trends
Two brokers discuss the main developments in cyber risk management and the threats to prepare for
New EU data protection regulation “is going to massively change” the cyber risk landscape – JLT
The forthcoming EU data protection regulation will significantly change the risk landscape for European companies and risk managers must prepare now, warned Sarah Stephens, head of cyber technology and media at JLT.
She said: “In Europe, there is a lot of concern around the upcoming EU general data protection regulation, which is going to massively change the landscape for companies that have data protection issues.
“The focus from companies – around preparing for it, getting the right risk management in place, getting the right escalation procedures in place for data breaches and how to prepare for the possibility of the financial impact of these incidents – could be much greater.”
UK firms lack understanding of cyber risks – Marsh
UK firms are failing to adequately assess and understand cyber risk and are more vulnerable to cyber attacks as a result, according to a survey conducted by Marsh.
Stephen Wares, the broker’s cyber risk practice leader for Europe, the Middle East and Africa, said: “Only 18% of firms have a complete understanding of their cyber risk profile, which effectively means that only 82% of firms have, at best, a basic understanding of their cyber risk profile.”
The survey asked respondents whether they had made an estimate of what the worst cyber incident will cost them financially, to which “61% of firms admitted that they had not undertaken that exercise,” Wares explained.
“This leaves companies in a position of not knowing what cyber events might affect the organisation and what the financial impact might be.”
Marsh’s findings are based on research among risk managers and chief financial officers from more than 100 large- and medium-sized UK firms