Risk Barometer 2018: Business interruption and cyber incidents dominate risk landscape in 2018

Meanwhile, privacy risk is back in the spotlight following huge data breaches in the United States. The introduction of the General Data Protection Regulation (GDPR) across Europe in May 2018 will intensify scrutiny further, bringing the prospect of more, and larger, fines for businesses who do not comply. Time is running out to be GDPR-ready.

'Compared to the U.S., where privacy laws have been strict for decades and cyber security and privacy regulation is continuously evolving, firms in Europe now also have to prepare for tougher liabilities and notification requirements. Many businesses will quickly realize that privacy issues can create hard costs once the GDPR is fully implemented,' says AGCS's Global Head of Cyber, Emy Donavan. 'Past experience has shown that a company's response to a cyber crisis, such as a breach, has a direct impact on the cost, as well as on a company's reputation and market value. This will become even more the case under the GDPR.'

Cyber threats also vary according to company size or industry. 'Small companies are likely to be crippled if hit with a ransomware attack, while larger firms are targets of a greater range of threats, such as the DDoS attacks which can overwhelm systems,' says Donavan.

Allianz Risk Barometer results show that awareness of the cyber threat is soaring among small- and medium-sized businesses, with a significant jump from #6 to #2 for small companies and from #3 to #1 for medium-sized companies. With regard to sector exposure, cyber incidents rank top in the Entertainment & Media, Financial Services, Technology and Telecommunications industries.