Cyber Risk Ranks High Among Businesses, but Many Still Feel Resilient: Beazley

After a legion of well publicized cyber attacks, it’s no surprise that a large minority of businesses now see technology as a top risk for their company. At the same time, they also see themselves as resilient to cyber challenges coming their way, according to a new Beazley report.

About 37 percent of respondents said technology is the highest category of risk currently affecting their organizations the report found. About 34 percent of respondents said cyber risk is their top risk now, the report explains.

At the same time, about 44 percent of businesses said they’re “very prepared” to manage their cyber risk, and respondents said they had a high state of resilience for cyber risks. In fact, 91 percent of business leaders said they feel moderately or highly resilient to risk in general.

“One of the key learnings from the pandemic is that, by and large, businesses have survived, adapted and thrived,” said Bethany Greenwood, Head of Cyber & Executive Risk and Interim Co-Chief Underwriting Officer at Beazley.

Beyond cyber, businesses report robust levels of risk in their daily operation. About 85 percent of leaders said the business environment involves moderate to high risk. A robust minority – 31 percent – said supply chain is their top boardroom risk now.

Other report highlights:

• 18 percent of respondents said political and economic risks are highest on the list, and 12 percent viewed environmental the same way.

• Technology, media and telecoms and financial institutions are the most upbeat about their resilience, with 55 percent saying they’re more resilient than a year ago.

• 37 percent of public sector and education, and 35 percent of hospitality and entertainment feel more resilient than a year ago.

• 47 percent of U.S. business leaders said they are more resilient to risk compared to a year ago.

• 44 percent of business leaders said they’re very prepared to handle both cyber and pandemic risks.

• Most leaders say their businesses are either moderately (56 percent) or highly (35 percent) resilient.

• 85 percent of leaders say their businesses will feel more resilient in 12 months.

Beazley’s report is based on a commissioned survey from Opinion Matters of more than 1,000 business leaders and insurance buyers in the U.S. and UK with international operations. Respondents covered multiple industries and sectors.

The full report is “New world, new risks: How are businesses’ attitudes to risk and resilience changing?” – and it is part of the specialist insurer’s Risk & Resilience series of reports.

Source: Beazley