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Cybercrime - In the top 5 risks faced by Australian business in 2015

2 February 2016 | walter

Cybercrime costs the Australian economy over $1 billion annually.

Cybercrime risk moved into the top 5 risks faced by Australian business in 2014 according to Allianz research; it wasn’t in the top ten in 2013.

Businesses are being targeted by criminals using highly sophisticated cyber attacks such as denial of service (DoS), botnets, worms, spear phishing and drive-by exploits. Cyber crime and data breaches cost the global economy around $120 billion annually and are considered one of the top emerging risks for the 21st Century.

In response to the growing cyber criminality threatening both corporate and small to medium enterprises (SMEs), Allianz Global Corporate & Specialty (AGCS) has launched Allianz Cyber Protect to the Australian market to enable businesses to protect themselves against cyber criminals, data loss and the potential ramifications.

According to Holger Schaefer, General Manager of Allianz Global Corporate & Specialty, “all businesses need to review their vulnerability to cyber attack and the financial and reputational damage it may cause.”

“Companies are facing attacks on a daily basis and firms, such as online retailers that have a critical dependency on digital networks, may not be fully aware of how a cyber attack could be fatal to their business. Many cyber criminals are now hacking into the systems of SMEs as a way of ‘piggy-backing’ access to the systems of the larger companies they partner with.”

Allianz’s 2014 Risk Barometer report found that, for Australia, the risks associated with cyber crime, IT failures and espionage ranked fifth in terms of the risks facing Australian business. This category of risk did not even make the top ten in the 2013 survey. Loss of reputation/brand value ranked third in 2014, up from fifth in 2013.

Mr Schaefer added, “reputation is an intangible asset, yet it is a decisive factor in a business’s future success. Irreversible damage can be done to a brand’s reputation if they do not have risk management and mitigation strategies in place to combat a data breach. Moreover, the digital age has increased vulnerability with the potential for reputational harm via social media, which can carry information across the globe instantly." 

CMIB Insurance can assist with your management of the Cyber crime threat by having access to a comprehensive suite of insurance products to address various first and third-party liability issues that can arise from a serious cyber attack or data breach. Cover of up to a limit of $50 million can provide different levels of business interruption cover that can be tailored to the client‘s needs.

Scource: Allianz Australia