Executives are starting to get it. They understand the security threat looming over their companies to the point where they have more concern about cyber threats than about other major business risks, a new report said.
More than 85 percent of the 258 decision-makers surveyed said they were very or somewhat concerned about cyber risks to their organizations, compared with the group’s response to six other areas of risk, including income loss (82 percent of executives were very or somewhat concerned), property damage (80 percent), and securities and investment risk (76 percent). American International Group, Inc. (AIG) conducted a survey where they polled 323 risk managers, IT decision makers, C-suite executives and brokers in the U.S. and Canada who are involved in the insurance industry in some capacity.
Additional survey results, which include input from insurance brokers, found high demand among executives and brokers for information about cyber threats, with 80 percent indicating they find it difficult to keep pace because the cyber threat is evolving so rapidly.
Other findings give insight into the pervasiveness of cyber risk concern among executives:
• 69 percent of executives and brokers believe the reputational risk from a cyber attack is far greater to a company than the financial risk.
• 75 percent of executives and brokers say legal compliance issues are making companies think more about cyber risks.
• 82 percent believe hackers are the primary source of cyber threats, though a significant portion of those surveyed, 71 percent, also perceive human error as a significant component of cyber risk.