Cyber-Risk Management

For many years, the world has benefited from information technology advances that have improved the productivity of almost every industry – banking, healthcare, technology, retail, transportation, and energy. But we continue to underestimate the dark side of this equation: Greater dependence on information technology is resulting in an increasing and unprecedented number of cyberattacks.

The searing reality is that both the growing strategic relevance of data and the potential impact of data breaches for companies are outpacing most preparedness initiatives. The most recent Global Risks report by the World Economic Forum and its partners (including our firm Oliver Wyman) ranks cyberattacks as one of the top 10 risks most likely to cause a global crisis.

Companies must treat cyber risks as permanent risks to their entire enterprise and not as isolated “information technology” events. Ignoring the threat could drop unprepared companies into the middle of a full-blown crisis.

Rising Cyber Risks

Companies are spending more on cyber-risk insurance to protect themselves from an increasing number of cyberattacks. See chart below for a view of coverage increases by industry.