Despite the increasing threat of cyberattacks, businesses are slow to update their cybersecurity arrangements. Only 10% of financial services companies surveyed by Marsh had cyberattack insurance. But 50% of executives surveyed at these companies believed they were insured.
To foster a more data-secure corporate environment, it is necessary to understand the many costs of cyberattacks. The exposure of sensitive company data, including formulas and trade secrets, can be highly costly. Companies can face heavy regulatory fines and class-action lawsuits in multiple jurisdictions, including the US and Europe. Company reputation can also take a big hit.
Financial services companies, though frequently attacked, are not the only ones at risk. Victims of recent, high-profile attacks include Target, Sony, and eBay. Companies from all sectors must take the risks and costs of cyberattacks seriously and move forward with comprehensive defensive plans.
Some senior bankers say they have been slow to share much information on cyber security because of worries about breaching customer privacy laws or competition rules. They also worry about the reputational damage of having been hacked.