Of 2,150 cybersecurity professionals surveyed by Hiscox, over 67% said their organization experienced an increase in cyberattacks in the past year. While cyber insurance take-up rates continue to rise, over a quarter of business leaders said their organization does not have sufficient resources to manage the financial risks associated with a cyber incident. In addition to the financial toll, respondents were also increasingly concerned about the risks to brand reputation that stem from cyber incidents.
Recognizing the bottom-line impact of brand damage and cyberrisk management, 61% said reputation damage from a cyberattack would significantly damage their business, and 64% said they risk losing business if they do not handle client and partner data securely. When asked about the impacts of cyberattacks in the past year, 47% said their organization had greater difficulty attracting new customers, 43% lost customers, 38% experienced bad publicity that impacted brand reputation, and 21% lost business partners.
Respondents experienced these impacts at significantly higher rates than last year, when 20% reported more difficulty attracting customers, 21% lost customers and 25% incurred publicity-related brand damage.