Allianz released its annual report “Risk scale” That outlines the main stresses that executives should notice in the corporate world. For the second year in a row, cyber incidents rank as the most relevant risk globally, with an index of 34% in the ranking, followed by interruption of activity (34%), macroeconomic developments (25%), energy crisis (22%) and changes in legislation. and regulations (19%).
The scenario brings an alert from NovaRed to enhance cyberattack response training. “Highlighting cyber risks also underscores the value of data in the age we live in. Thinking about the financial and reputational ramifications, companies need to direct their investments in governance and risk management internally and in relation to third parties. Simón Santinato, Data Protection Officer at NovaRed Brasil, emphasized, Developing cyber security is no longer an option.
Currently, cybercrime costs the global economy over $1 trillion annually, which is about 1% of global GDP. In cases of data breaches, average costs reach historic records, from an average value of $4.35 million in 2022 to an expected exceeding $5 million this year.
The manager also points to the need to improve security training and governance especially in incident response, as costs become scalable when critical assets to business intelligence are included.
The Allianz report also shows that hackers are increasingly targeting digital supply chains, providing an opportunity to attack many companies at once, gaining additional extortionate leverage. “This is not a concern limited to large companies. Medium-sized companies are also being increasingly targeted due to their lack of maturity in the field of cyber security.
For Brazil, the three main risks that concern CEOs are business interruption, information security, and macroeconomic development. The first two factors are intrinsically linked, as cyber attacks become obstacles to company operations and create negative effects in the short and long term. According to the SonicWall 2023 Cyber Threats report, Brazil already ranks as the fourth largest target of ransomware attacks in the world, behind only the United States, the United Kingdom, and Spain.
