Large companies are often prime targets for cyberattacks. This has created a continued need to dedicate significant resources to help protect the organization, especially as hackers grow in sophistication.
A recent survey from Nationwide® of risk managers1 — those charged with identifying, evaluating and selecting the best techniques to mitigate risk — revealed that cybersecurity takes up a substantial portion of their budgets. 68% expect these budgets will continue to grow in the coming years.
"Nationwide’s previous studies have revealed that consumers as well as small to midsize businesses have begun to take cyber threats very seriously," Tim Nunziata, Vice President of Cyber Risk for Nationwide Excess and Surplus/Specialty. "Large businesses have always been a target and that’s why many already have teams in place to protect them. As the threats become more frequent and sophisticated, risk managers know they must remain vigilant."
Large enterprises remain concerned about cyberattacks
Respondents believe there is a greater risk of their company experiencing a cyberattack since the beginning of the war in Ukraine (57%). 90% say they are concerned about their company falling victim to a cyberattack. But they are preparing: 91% have an incident response plan in the event of a cyberattack.
68% of those who took part in Nationwide’s survey report their company has been the victim of an attack in the last 3 years, including almost 1 in 4 (24%) in the past year. 88% say that they’ve experienced at attack at some point in their company’s history.
Cyberattacks are costly and recovery can take a while
Of those who experienced an attack nearly 7 in 10 (68%) report their business operations were impacted and three-quarters (75%) reported a significant or moderate financial impact.
71% said recovery from the attack took longer than 1 month, and more than a third (35%) reported the process taking longer than 4 months.
Risk managers are on the lookout for common attacks and new threats
Risk managers view data breaches (24%), ransomware (13%) and business interruption (11%) as the top cybersecurity threats. The cyberattack of the future? Deepfakes. Despite an increase in companies falling prey to deepfake attacks and even warnings from the FBI, it’s not high on the list of concerns for risk managers. Only 6% of those surveyed say social engineering, impersonation or other tactics to manipulate employees is their biggest concern.
Companies are turning to insurance experts for help
83% report they are renewing their current cyber protection. 94% of those who did renew that policy said their broker or agent played an important role during the renewal process. Half (53%) of risk managers report their coverage has changed in the past 2 years, with most reporting that they’ve increased their coverage.
"Agents and brokers can really help clarify the threat landscape, including what is out there and what cyber trends they are seeing," said Nunziata. "Where they really provide value is making sure a business has the coverage they need to protect and mitigate issues."