Despite the threats posed by the emergence of new technologies such as AI, global business leaders’ focus on cyber risk seems to be waning.
According to Beazley’s latest “Risk & Resilience” report, the perceived threat of cyber risk peaked in 2021 at 34%, but has since declined to 27%. The report warns that the economic impact of cybercrime on businesses worldwide is forecast to hit a staggering $10.5tn by 2025, as per research from Cybersecurity Ventures.
In 2024, the perceived cyber risk is projected to remain at 27% while businesses’ preparedness for this risk continues to decrease. Despite this, the fear surrounding AI and other disruptive technologies has grown, with 26% of business leaders identifying their inability to adapt to rapid technological changes as a prime concern.
The threat of intellectual property (IP) theft has also become a major worry, with 24% of business leaders ranking it as their top risk in 2023, over double what it was in 2021. More worryingly, over one in four businesses (26%) report they are ill-prepared to mitigate this risk.
Beazley Group Head of Cyber Risks, Paul Bantick said, “Business leaders are finding it a struggle to keep up with the constantly evolving cyber threat. But worryingly they appear less concerned by cyber risk than a couple of years ago.
“This could be because they have been lulled into a false sense of security as the war in Ukraine led to a temporary reduction in the ransomware threat level when a number of cyber gangs splintered, but this situation is only temporary and should not be viewed as the new normal.”
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