Constant Hacking

Hilary Tuttle


August 1, 2016

hacking risk management

Nine out of 10 businesses experienced at least one hacking incident in the past year, marking a 21% increase from 2015, according to a survey by Hartford Steam Boiler.

“Sixty-four percent of risk managers say they have experienced more than six hacking incidents in the last year—up from 32% in 2015,” said Eric Cernak, cyber practice leader for Munich Re. “U.S. businesses are under constant assault.”

Adding to their cyber concerns is a new and notably riskier attack vector: 56% of risk managers said their business either implemented or plan to implement internet of things devices, but only 28% believe they are safe for business use.

To guard against cyberrisk, risk managers may actually be doing less on some critical preventative measures, however. More say their companies are using encryption (44%, compared to 25% in 2015), while use has decreased for intrusion detection/penetration testing (28%, down from 32%) and employee education programs (12%, down from 25%).

For additional protection, 50% purchased cyber insurance for the first time or increased limits in the past year. Thirty percent of businesses do not have any level of cyber insurance coverage, with the primary reasons cited as perceived complexity, lack of a sufficient threat and cost.

Hilary Tuttle is managing editor of Risk Management.