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BizReport : Internet : June 25, 2015

Research reveals lack of cyber risk assessment among U.K. businesses

Businesses may have control over their own networks, but that is not the case of those of suppliers and third-parties they might be linked to. New research from Marsh (UK) reveals that less than one third of businesses in the U.K. review their suppliers' cyber risk.

by Helen Leggatt

Insurance broker and risk management firm Marsh surveyed risk managers and chief financial officers from more than 100 large and medium-sized firms in the U.K. and found that almost 7 out of 10 (69.4%) "do not assess the suppliers and/or customers they trade with for cyber risk".

cyber risk.pngAccording to Marsh's report, 'UK Cyber Security: The Role of Insurance in Managing and Mitigating the Risk', "Without the appropriate checks, this leaves them exposed and lacking control over standards of IT security in systems where hackers might find a 'back door' into their organization".

Furthermore, just 11.1% of U.K. companies have cyber insurance with 38.9% saying they intend to get quotes within the next 12 months. However, almost half (47.2%) say they have no plans to acquire cyber insurance and a similar number (48.6%) believe they do not have adequate information to be able to assess insurances that are available.

Almost a quarter (22.2%) of businesses surveyed admitted to having no response plan in place should a cyber attack occur and 26.4% have only a partial plan in place. Board-level ownership of cyber risks was also low at 19.4% among U.K. businesses, showing little change from the 20% of 2014.

Earlier this year, a whitepaper from not-for-profit security group the Corporate Executive Programme found that just 13% of companies in the U.K. with an annual turnover of $1 million to $1 billion have dedicated cyber insurance, despite Government-led initiatives to improve awareness. Meanwhile, across the Atlantic, some 40% of U.S. companies had dedicated cyber insurance.

Image via Shutterstock

Tags: cyber crime, insurance, security

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