Travelers Risk Index Shows Cyber Threats Remain Top Overall Business Concern
Cyber threats again were the leading concern, but other issues were close behind, a change from 2021 when cyber held the top spot by 6 percentage points. This year, 59% of survey respondents said that they worry some or a great deal about cyber threats, followed closely by broad economic uncertainty (57%), fluctuations in oil and energy costs (56%), the ability to attract and retain talent (56%), and medical cost inflation (55%). Big jumps were seen this year relating to concerns in oil and energy costs (a 16-point increase, up from 40%) and supply chain risks (54%, up from 43%), a nod to current events and the serious obstacles businesses and individuals are facing.
“Cyber attacks can shut down a company for a long period of time or even put it out of business, and it’s imperative that companies have a plan in place to mitigate any associated operational and financial disruptions,” said
Overconfidence in navigating the evolving cyber landscape is causing a false sense of security, with 93% of respondents stating that they were confident their company had implemented best practices to prevent or mitigate a cyber event. But when asked whether their company had taken specific prevention measures, the majority had not: 64% don’t use endpoint detection and response, 59% haven’t conducted a cyber assessment for vendors, and 53% don’t have an incident response plan.
Even multifactor authentication (MFA) has been slow to catch on. According to this year’s Travelers Risk Index, 90% of survey respondents said they were familiar with MFA, yet only 52% said their company had implemented the practice for remote access. This, despite Microsoft stating that 99.9% of account compromise attacks are blocked by adding the extra security measure of MFA to verify a computer user’s identity, and Arete stating that 94% of ransomware victims weren’t using MFA.
Other important survey findings relating to cyber include:
- The cyber-specific concerns that stayed in the top two spots are: suffering a security breach or someone hacking into a business computer system (57% say they worry some or a great deal) and a system glitch causing a company’s computers to go down (55%). Becoming a cyber extortion/ransomware victim moved from eighth position to third this year at 54%.
- For the seventh consecutive year, there was an increase in the percentage of survey participants who said their company had suffered a data breach or cyber event. This year, 26% said their company had been a cyber victim, with nearly half of those (49%) reporting that the event had happened within the past 12 months.
- Of those who said their company had suffered a data breach or cyber event, 71% have been a victim more than once.
- Nearly 75% of respondents said they believe having a cyber insurance policy is critical, but the percentage who said their company has purchased coverage was 59%, up only 3 points from 2021. Small businesses accounted for the largest increase of cyber policy purchasers, up from 30% to 38% this year.
Francis added, “Multiple cyber attacks might not be random – if you were vulnerable before and don’t take appropriate action as a result, you continue to be at risk. It’s important to take the prospect of a cyber attack seriously and to put your company in position to successfully manage a likely event.”
Travelers has long been committed to managing and mitigating cyber risk, with a dedicated team of underwriters, claim professionals and risk control specialists who work to help insure and protect customers’ assets.
In recognition of Cybersecurity Awareness Month in October, the
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