Cyber threats are a big reason to worry for any organization- small or big, private or public. There is an enemy whom we don’t know much about. They are not machines but humans (cyber criminals) who are continuously learning, increasing their creativity and perfecting their attack methods. We have an enemy that cannot be destroyed completely.
The second Hiscox report on Cyber readiness in companies has raised every eyebrow in the corporate world. Organizational decision makers are in shock to know that only 11% of the organizational community are experts in cybersecurity. Rest of them are intermediates or novices (mostly). Let’s have a look at the summary of the report and try to understand where we lacked.
Infographics by Hiscox Report
Based on the report, we are presenting a summary: –
73% Organizations Fall Flat in The Test
Study states that 73% organizations don’t qualify the cyber readiness test. Researchers scored organizations depending upon their cybersecurity strategies and their execution. Henceforth, they designed a model, which categorized organizations into three classes- Experts, Intermediates and Novices. Unfortunately, only 11% organizations were ranked as Experts.
66% Identify Cyber Threat as Top Risk to Business
66% organizations realize that cyber-attacks are one of the biggest perils to their businesses. However, majority of the organizations lack adequate defense systems against cyber-attack.
Larger Organizations Show the Way
Studies have discovered that larger/best organizations are better prepared for cyber-attacks. 21% organizations, which have a strength of more than 250 employees have been identified as experts. Geographically, the UK and the US score better than other countries. Telecom, Media and Technology sectors score the highest whereas professional services score the least.
Smaller Organizations Lack Resources
Firms with an employee strength less than 250 spend less money on cybersecurity. Only 7% of smaller organizations were ranked under the ‘Experts’ category.
More the IT Budget, More the Cybersecurity
It has been noticed that more you spend for cybersecurity from the IT budget, the better are your chances to improve stay secured. Organizations that were ranked as experts spent 12.6% of the IT budget ($19.8 million). Novices nearly spent 9.9% of their IT budget ($9.9 million) on cybersecurity.
Financial sector tops the list of highest investors in cybersecurity solutions followed by pharmaceuticals, health sector and government entities.
Also Read: Hidden Cyber Security Facts You Must Know!
Not surprisingly, perhaps, government organizations, telecoms, energy and financial services are the frequent and preferred targets of cyber criminals. In fact, Spanish organizations are heavily targeted by hackers. Studies state that 45% organizations were subjected to cyber threat at least once in the last year. In addition, 67% of the affected ones were attacked twice or thrice last year.
Experts More Proactive
Reports states that experts are more aggressive towards implementing security practices in their organization. 60% of the experts have cyber insurance, 97% improve employee education through various programs and 72% of the cream layer are willing to modify practices after any cyber-attack.
Losses Estimated Up to $25 million
In the report, losses are estimated according to the size of the company. Larger organizations (with employee strength more than 1000), estimated costs are as follows: –
- UK- $20 million
- Spain- $356,000
- US- $25 million
- Germany- $20 million
For smallest firms (less than 100 employees), costs are as below: –
- Germany- $24,000
- Spain- $63,000
German Organizations Encounter Costliest Incidents
Reports say that German firms experienced maximum loss per single incident. The amount is $5 million per single incident, which is huge when compared to $800,000 for Spanish organizations.
Organizations Will Spend More in Cybersecurity
Nearly 59% organizations plan to spend more on cybersecurity in the upcoming year. The Technology sector tops this list. Employees are considered to be the weakest component when it comes to cybersecurity. Hence, 55% of experts plan to spend their money on employee awareness. Novices are spending 29% of their cybersecurity budget on employee education about cybersecurity practices.
Cyber Insurance Becoming Popular
Cyber insurance will become more popular in the upcoming years. With GDPR in amendment from May 2018, companies will strive hard to protect customer data and avail cyber insurance options. 33% respondents have a cyber insurance, 25% organizations plan to go for an insurance in the upcoming year and 38% organizations still don’t plan to obtain cyber insurance. However, there is an ambiguity about to what extent cyber insurance would cover firms.
Also Read: 7 Cyber Attacks To Watch Out For
These are the findings of the Hiscox report related to cyber readiness. The study included 4100 professionals like IT managers, department heads, and executives in The Netherlands, Spain, Germany, The UK and The US. These anticipated organizations are in the foreground, battling against cyber criminals. Hope the summary of the report helps your organization to strive towards absolute cyber readiness.