Companies in Asia are most concerned about the potential for a cyber-attack or data breach to cause reputation damage and financial loss to their firms and are planning to become more proactive in managing their cyber risk exposures, according to a recent survey conducted by Marsh.
A survey of insurance buyers, conducted by Marsh at in Singapore, risk managers continue to be concerned about the perceived threat of cyber-attacks on their organisations, with 85% naming the risk as “critical” to their organisation; a similar number to last year’s survey results.
Asked to identify the top issue stemming from a cyber-attack or data breach, 65% said that reputation damage was their number one concern, a significant increase from 44% last year. This was followed by financial loss (21%), law suits (7%), loss of customers (4%), and regulatory action (1%).
In addition, while only 22% of companies indicated they currently purchase stand-alone cyber liability insurance, 47% say they plan to purchase this insurance in the next 12 months.
“The threat of cyber-attacks and data breaches is clearly global, with the severity and frequency increasing around the world, and particularly here in Asia," says Stephen Wares, Marsh’s Cyber Risk Practice Leader in Europe, Middle East, and Africa. "The issue has firmly moved from the I.T. department and into the boardroom, as shareholders and other stakeholders seek reassurances about a company’s reputation resiliency and security integrity.”
Stella Tse, Marsh’s Financial and Professional Risks Practice Leader in Asia, said: “New data privacy laws across Asia, combined with an increase in cyber-attacks in our region, are forcing companies to act from a risk mitigation, breach response, and insurance perspective. Our survey shows that companies now believe the risk – especially the reputation risk – is too real to ignore.”