Cyber and tech risk perceptions shifting

Perceptions of the most risky cyber and technology threats are changing, as companies shift their focus towards artificial intelligence risks. This is amongst the findings of insurer Beazley's latest Risk and Resilience report: Spotlight on Cyber and Technology Risks 2023.

The economic impact of cyber crime on business across the globe continues to reach new levels, with the cost predicted to reach US$10.5trn by 2025, a 300% increase since 2015, according to the report. Despite this, boardroom focus on cyber risk appears to be diminishing.

The perceived threat of cyber risk to global business leaders peaked in 2021 (34%) and over the past two years, the risk perception has dropped (27%). In 2024, it is predicted to remain at 27% whilst business preparedness for this risk continues to decline.

As cyber fears decrease, the technological risk landscape has fragmented, with executives nearly as concerned about the perceived threat posed by disruptive new technologies, such as AI, as the risk of cyber crime.

Leaders are also turning their attention to other concerns such as the risk of theft of their intellectual property with 24% of business leaders ranking it as their top risk in 2023.

Paul Bantick, group head of cyber risks, Beazley said: “Business leaders are finding it a struggle to keep up with the constantly evolving cyber threat. But worryingly they appear less concerned by cyber risk than a couple of years ago. This could be because they have been lulled into a false sense of security as the war in Ukraine led to a temporary reduction in the ransomware threat level when a number of cyber gangs splintered, but this situation is only temporary and should not be viewed as the new normal.

“As the MOVEit hack has proved, the bad actors are always looking for new ways to attack with tactics ranging from third party supplier attacks to more sophisticated social engineering and phishing attack techniques. Businesses of all sizes and across all industries cannot afford to take their eye off the ball, just at a moment when cyber criminals are starting to look to make up for profits lost over the past 18 months."

See the Q3 2023 of CIR Magazine for more on this report.

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