Posted by: Robert Richardson
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Ran across the Fortune 1000 Cyber Disclosure Report, published earlier this month by Willis North America, a unit of Willis Group Holdings. The report found that among the Fortune 501-1,000, 22% remained silent on cyber risk. A “significant” increase compared to 12% of the Fortune 500 firms who remained silent in their disclosures, Willis said.
- The top three cyber risks identified by the Fortune 1,000 include: privacy/loss of confidential data, reputation risk and malicious acts.
- Cyber terrorism and intellectual property risks ranked lower than expected among the Fortune 1,000 given the focus of the federal government on these areas of risk and their importance to the health of the U.S. economy overall, the report said.
- When describing the “extent” of cyber risk exposures, financial institutions and technology companies rise to the top of the list disclosing distinct cyber exposures. Meanwhile, firms in the energy and utility sector report the fewest distinct exposures.
- In evaluating loss control measures, the industry groups that disclosed the greatest number of technical protections against cyber risk, including firewalls, intrusion detection, and encryption, include the technology, health care, professional services and financial institution sectors. Within financial services firms, insurance companies refer to technical risk protection 63% of the time.
- With respect to cyber insurance protection, the funds sector (33%) followed by utilities (15%), the banking sector and conglomerates (14%) reported the greatest levels of insurance. Insurance and technology sectors both disclosed the purchase of insurance coverage at the 11% level. However, the report indicated that many companies may be under-reporting the level of cyber insurance coverage based on Willis data and other industry data indicating higher take up rates, particularly for the health care sector.
- The disclosure of actual cyber events remains at 1%, a seemingly low number given the number of attacks that appear in the press on a regular basis, the report said.