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As the new decade begins, business interruption perils will be critical for risk managers to address, according to industry experts.
From extreme weather to supply chain problems to cyberattacks, business interruptions have financial and reputational risks.
Cyber-related business interruption can come from direct attacks, such as malware, or indirectly when a third-party vendor experiences downtime due to a cyber event.
NU PropertyCasualty360 reached out to experts on what trends could develop in 2020 and beyond.
One trend, cyber risks like ransomware and email “phishing” are not going away anytime soon.
“… phishing scams designed to provide hackers access to cloud-based Microsoft Office 365 accounts are increasing at an alarming rate, as cybercriminals recognize the wealth of corporate and client information they can harvest once such accounts are compromised,” Eric Lidman, assistant vice president, professional & cyber liability, QBE North America told the magazine.
Another trend, according to Lidman, ransomware attacks are increasingly targeting government entities because hackers perceive them to lag behind the private sector in cybersecurity protection.
The fifth generation of wireless technology, 5G, will likely bring new risks.
“The same efficiencies that industries will gain through leveraging 5G will translate to attackers — faster and larger-scale attacks,” said Mike Skinner, a partner in charge at HORNE Cyber. “I predict there will be more (and more expensive) cyber claims as a result of 5G.”
According to NetDiligence, the 2018 average cost of a cyber breach was $604,000.
Read more what the experts think the cyber risks of the future are at propertycasualty360.com.
