Hiscox Small Business Cyber Risk Report™ Finds Two-Thirds of Small Businesses Fail to Act Following a Cyber Security Incident
NEW YORK, NY – June 19, 2018 – Hiscox, the international specialist insurer, today released its 2018 Hiscox Small Business Cyber Risk Report™, which revealed data on US small businesses’ preparedness for cyber threats. The report found that 65% of small businesses fail to act following a cyber security incident. Notably, 47% of small businesses had suffered at least one cyber attack in the past year. Forty-four percent of small businesses that reported a cyber attack in the past year experienced two, three or four attacks.
Additional highlights from the report include:
- Cyber a Top Concern: Two-thirds of small businesses surveyed reported cyber risk as a top concern for potential business impact on their organization in the coming year.
- Lack of Strategy: Barely half (52%) of small businesses reported having a clearly-defined strategy around cyber security.
- Training: Less than one-third (32%) of small businesses have simulated phishing experiments to assess employee behavior and readiness in the event of an attack.
- Budget Catch-22: Despite keeping cyber threats as a top-of-mind concern, 50% of small businesses say they’re challenged by a lack of budget.
While budgeting for cyber-related resources is critical, people, processes and technology must also be incorporated to ensure cyber readiness. When it comes to cyber-attacks, Hiscox recommends small businesses consider the following steps as best practices:
- Prevent: Involve and educate employees at all levels within the business. Have a formal budgeting process in place and ensure cyber security is considered and prioritized in decision-making.
- Detect: Include intrusion detection and ongoing monitoring on all critical networks. Track violations (including those that are successful and thwarted), and generate alerts using both automated monitoring and manual logging.
- Mitigate: Create a plan for all incidents, from detection and containment to notification and assessment, with specific roles and responsibilities clearly defined. Regularly review response plans to integrate emerging threats and new best practices. Insure against financial risks with a stand-alone cyber policy or endorsement.
The 2018 Hiscox Small Business Cyber Risk Report™ focuses on the responses of US small businesses surveyed as a part of the Hiscox Cyber Readiness Report 2018™, which was released February 7, 2018.
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A full copy of the 2018 Hiscox Small Business Cyber Risk Report™ can be accessed at https://www.hiscox.com/documents/2018-Hiscox-Small-Business-Cyber-Risk-Report.pdf .
About the Study
Hiscox commissioned Forrester Consulting to assess organizations’ cyber readiness. In total, 4,103 professionals responsible for their respective organization’s cyber security strategy were contacted (1,000 plus each from the UK, US, and Germany, and 500 each from Spain and the Netherlands). Drawn from a representative sample of organizations by size and sector, these are the men and women on the front line of the business battle against cybercrime. While each is involved to a greater or lesser extent in their organization’s cyber security effort, more than 30% make the final decision on how their business should respond. Respondents completed the online survey between October 12, 2017, and November 10, 2017.
Hiscox is a global specialist insurer, headquartered in Bermuda and listed on the London Stock Exchange (LSE:HSX). Our ambition is to be a respected specialist insurer with a diverse portfolio by product and geography. We believe that building balance between catastrophe-exposed business and less volatile local specialty business gives us opportunities for profitable growth throughout the insurance cycle. It’s a long-standing strategy which in 2017 saw the business deliver a profit before tax (excluding foreign exchange) of £93.6 million despite reserving net $225 million for claims in the most costly year ever for natural catastrophes.
The Hiscox Group employs over 2,700 people in 14 countries, and has customers worldwide. Through the retail businesses in the UK, Europe, Asia and the US, we offer a range of specialist insurance for professionals and business customers as well as homeowners. Internationally traded, bigger ticket business and reinsurance is underwritten through Hiscox London Market and Hiscox Re & ILS.
Our values define our business, with a focus on people, quality, courage and excellence in execution. We pride ourselves on being true to our word and our award-winning claims service is testament to that. This information is neither intended nor should be construed to be a solicitation for the purchase of insurance by any US person or entity. For further information visit www.hiscox.com.
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The content provided above is provided for general informational purposes, but is not intended, nor shall it be deemed, to be business, legal or insurance advice for any particular or specific person or entity.
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