Cyber incidents result in a 9% decrease in shareholder value

Issue 6 2023 News & Events, Information Security

Aon published its 2023 Cyber Resilience Report, revealing that, on average, a significant cyber incident resulted in a 9% decrease in shareholder value – over and above the market – in the year following the event. The report serves as a guide to help business leaders benchmark their organisation's cyber risk maturity against peers and make better decisions when managing cyber across six risk areas: cyber, operational, supply chain, insider, reputational and systemic.

Aon's global report is based on proprietary client data collected from Aon's Cyber Quotient Evaluation (CyQu), Aon's Ransomware Supplemental Application and Aon's Operational Technology Application. CyQu is a global eSubmission and risk assessment platform that helps organisations better manage cyber risk by providing visibility into cyber exposures and insurability drivers.

"Companies have experienced new forms of volatility over the last four years, experiencing a rise in the frequency and severity of cyber threats and ransomware events, followed by a cyber insurance market with rising premiums and retentions with significant underwriting scrutiny," said Christian Hoffman, Global Cyber Leader for Aon. "We observe that the C-suite increasingly sees that cyber events have the potential to impact all areas of their business. Achieving cyber resilience is a recurring theme in board room discussions, and the threat is now being addressed from a holistic risk perspective."

Additional highlights from the global report include:

• Cyber risk: Five domains – endpoint and systems security, remote work, application security, access control and data security – demonstrated the most improvement on changes to CyQu risk profiles, providing greater insight into an organisation's most significant risks and control effectiveness.

• Operational risk: Ransomware events decreased 16% from Q3 2022 to Q4 2022, but data from the cyber and errors and omissions insurance marketplace show an uptick in Q1 2023.

• Insider risk: Two in five companies reported a lack of security operations centre controls, highlighting the need for improved cyber security measures to prevent phishing, the most common vector for initial network access.

• Systemic risk: Managing systemic risk is a high priority, stemming from the use of technology in an interconnected world. As cyber threats evolve, risk quantification models and scenario planning are being refined to accurately determine an organisation's risk profile and inform the extent of cyber insurance coverage required.

Aon also published key insights by industry, including:

• Finance and insurance: Insurance claims are rising, with a 38% increase in ransomware claims from Q4 2022 to Q1 2023.

• Healthcare: The overall cyber risk score for healthcare clients improved from 2,6 to 2,8, on a scale of 1 to 4. In 2022, for enterprise and global clients in healthcare, the overall risk profile improved from 'basic' to 'managed' with more than 80% of the companies reporting scores of 2,5 or higher.

• Manufacturing: Aon's CyQu data shows that the overall risk score improved from 2,2 to 2,5 – on a scale of 1 to 4 – in 2022 for mid-market clients in the manufacturing industry; however, 56% of the companies reported risk scores lower than 2,5 in 2022. The median percent of IT budget reportedly spent on security also rose globally, with companies reporting 8,5% of the IT budget dedicated to security.

"Achieving cyber and business resilience is a challenging endeavour for any organisation. Through Aon's broking and consulting capabilities, we help organisations navigate volatility and minimise financial, operational and reputational risk more appropriately," Hoffman added.

View the 2023 Cyber Resilience Report here.




Share this article:
Share via emailShare via LinkedInPrint this page



Further reading:

Pentagon appointed as Milestone distributor
Elvey Security Technologies News & Events Surveillance
Milestone Systems appointed Pentagon Distribution (an Elvey Group company within the Hudaco Group of Companies) as a distributor. XProtect’s open architecture means no lock-in and the ability to customise the connected video solution that will accomplish the job.

Read more...
Re-introduction of the booking system
PSiRA (Private Security Ind. Regulatory Authority) News & Events
[Sponsored] PSiRA is reintroducing the booking system for branch visits. Effective Monday, 4 December 2023, clients will be required to book a slot to visit any PSiRA branch.

Read more...
From the editor's desk: A sad but exciting goodbye
Technews Publishing News & Events
Welcome to the final monthly issue of SMART Security Solutions. This is the last issue of the year and the last monthly issue we will print. The SMART Security Solutions team wishes all our readers and advertisers a relaxing festive season and a peaceful and prosperous 2024.

Read more...
Regal celebrates successful golf day
Regal Distributors SA News & Events
Regal Distributors held its first official Regal Golf Day on 18 October at the Glendower Golf Course in Johannesburg. SMART Security Solutions was there on a hot summer’s day to meet many players and sponsors around the course.

Read more...
Gallagher Security releases Command Centre v9
Gallagher News & Events Access Control & Identity Management Integrated Solutions
Richer features, greater integrations, with the release of Gallagher Security’s Command Centre v9 security site management software designed to integrate seamlessly with various systems and hardware.

Read more...
Regal launches direct-to-branch WhatsApp communication
Regal Distributors SA News & Events
With a quick scan of a QR code and a few taps on your phone, installers, integrators, technicians or even end-users can chat directly with the team at their preferred Regal branch via WhatsApp

Read more...
FM Expo highlights industry trends and challenges
Securex South Africa News & Events Facilities & Building Management
Keeping tabs on what is happening within the building/facilities management arena can be frustrating, however, a quick way to find out what current trends, challenges, and solutions are available can be found at the Facilities Management Expo.

Read more...
All aspects of data protection
Technews Publishing Editor's Choice Information Security Infrastructure AI & Data Analytics
SMART Security Solutions spoke to Kate Mollett, Senior Director, Commvault Africa, about the company and its evolution from a backup specialist to a full data protection specialist, as well as the latest announcements from the company.

Read more...
South Africa shows a 1200% increase in deepfake fraud
News & Events Risk Management & Resilience
Sumsub released its third annual Identity Fraud Report of the year, analysing identity fraud across industries and regions based on millions of verification checks across 28 industries and over 2 million fraud cases.

Read more...
Projections for 2024’s Advanced Threats Landscape
News & Events Information Security
Kaspersky Global Research and Analysis Team (GReAT) experts offer insights and projections for 2024 in the Kaspersky Security Bulletin, with a focus on the evolution of Advanced Persistent Threats (APT).

Read more...