Risk Services Of Arkansas - March 2020

On the Other Side of the Screen

HOW TO REDUCE THE BIGGEST RISK TO YOUR COMPANY

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Loss of reputation or brand value

In the early days of business, the biggest risk companies faced were criminals sneaking in and breaking open the safe. Today, thieves are still a problem, but they no longer have to get their hands dirty to hurt your business. The biggest risk modern companies face is cybercriminals lurking on the other side of the computer screen. Allianz Global Corporate & Specialty (AGCS) is a global insurance company that conducts the Allianz Risk Barometer. This survey, which incorporates the views of a record 2,718 experts in over 100 countries, provides insight into the biggest risks facing businesses today. As of 2020, these experts agreed that cyber incidents rank as the most important business risk globally. The top 10 risks identified by the Allianz Risk Barometer 2020 are: • Cyber incidents • Business interruption • Changes in legislation and regulation • Natural catastrophes • Market developments • Fire, explosion • Climate change (increasing volatility of weather) Have a Laugh!

New technologies

Macroeconomic developments

Just seven years ago, cyber incidents ranked 15th on the barometer. However, as companies increase their reliance on data and IT systems and cybercriminals become more sophisticated, the risk has become more apparent. In the wake of many high-profile data breaches in recent years, cyber incidents bumped the former top peril, business interruption, to second place. In addition to being a top global risk, cyber incidents are considered among the top three risks businesses face here in the United States. Over 60% of businesses experienced phishing and social engineering attacks in 2018, and these attacks can be costly. In 2019, IBM Security reported that an average data breach cost $3.92 million due to lost profits, downtime, fines, lost customers, and other factors. While there are ways to reduce your risk of suffering a cyber incident — including training employees in cybersecurity strategy and limiting access to data — most experts agree that there is no way to prevent all cyberattacks. Instead, companies are encouraged to assess their risk and create plans to quickly respond to cyberattacks and get their business running again with little downtime.

Easy way out on pg. 4

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