New Aon report examines the cyber risks affecting business

Cyber risk is an enterprise risk, not solely a technology concern, say authors of a new report from Aon plc, entitled Solving the Cyber Puzzle: The Unexpected Ways Cyber Risk Impacts Your Business.

The 2020 Cyber Security Risk Report focuses on six areas of concern, including intellectual property, mergers and acquisitions, the safety of retirement plan information, executives’ vulnerability to cyber attack, computer crime and the fact that cyber security and corporate liability risk are interwoven.

Cyber extortion

In Canada, they say cyber extortion, one of the fastest growing forms of cybercrime, continues to be a big concern for organizations, while social engineering has become an area of growing worry, as well. Losses from such schemes are costly and have created a demand for insurance solutions that can effectively mitigate the risk, they add.

In looking at each area of concern, Aon provides a brief summary of the issues, then provides a “playbook” for companies looking to lessen the impact of potential cyber crimes and the liability companies have when a breach occurs. In looking at intellectual property (IP), for example, Aon points to estimates that put the cost of IP theft between $225-billion and $1-trillion annually.

To help, Aon recommends companies identify critical assets to understand what intellectual property the company holds and where. They say training that addresses how IP can be unintentionally exposed (the report provides several examples) is also vital.

Mergers and acquisitions

In mergers and acquisitions, meanwhile, the report points out that organizations can inherit a target company’s risks and vulnerabilities, yet less than 10 per cent of deals globally include cyber security due diligence as part of the deal process. Retirement plans, they add, “hold a wealth of personal and sensitive data and are a gateway to vast sums of money,” they write. “While many retirement plan hacks do not make headlines, reports in the media are becoming more prevalent.”

“Evaluation of risk responsibility and risk transfer options is essential,” they add

The report concludes with nine recommendations. Among them, Aon says companies should “stay abreast of regulations and be aware that disclosing risk may be just as important as disclosing a breach, and realize the growing vulnerability of the executive team,” they advise. “Become deeply literate in risk transfer and understand what your portfolio of property and casualty insurance policies does or does not cover related to cyber security.”