Our fourth Hiscox Cyber Readiness Report provides a thorough view of the techniques organisations are using to shield against cyber threats in 2020, as well as outlining a blueprint for cyber readiness best practice.
The report shows cybercrime is on the rise – and so is the threat to business. Cyber losses have risen nearly six-fold worldwide in the past year, according to the study.
The annual study shines a light on how prepared the commercial world is to face cyber threats and surveys firms in the UK, the US, Spain, the Netherlands, Germany, France, Belgium and Ireland.
Our very first Cyber Readiness Report landed in 2017 and provided a unique gauge of cyber readiness. It investigated the size and scope of the cyber security challenge and the way businesses were responding.
The 2020 report shows that as cyber security practices grow, so do the stakes. The proportion of firms reporting a cyber event is down this year from 61% to 39%, but the financial impact of each breach is many times greater than before.
Key findings from the 2020 Cyber Readiness Report
The 2020 report shows a cyber landscape which is maturing – though losses have soared, so too have the number of organisations which have achieved ‘expert’ status. The proportion of cyber experts has increased from 10% to 18% since 2019.
This follows two years of stalled growth, suggesting the corporate world is becoming better equipped to safeguard against cybercrime. The pace of spending has also accelerated, from $1.45 million to $2.03 million on average – and it seems this increased investment is buying expertise.
The threat of cybercrime is by no means diminished, however – large firms are still finding themselves in the firing line, with more than half of enterprise-scale organisations reporting at least one cyber incident.
One in six of those attacked were held to ransom, with costly consequences. The highest loss involving ransomware topped $50 million for one unlucky organisation.
The report sheds light on variations as well as trends. Some of the largest losses were seen in the UK market, including one UK financial services firm which was hit by total losses of $87.9 million. The largest loss from a single cyber event also fell on UK soil, costing the professional services company in question a cool $15.8 million.
Cyber readiness best practice
The 2020 report offers important insights into the best-protected companies and what they tend to have in common.
Almost one in five (18%) of UK businesses were ranked as cyber experts in the 2020 Cyber Readiness Report, which marks a significant leap from the previous year. 185 organisations achieved cyber expert status in 2020 and the report identified 679 cyber novices. Caught in the middle were 187 cyber opportunists, whose efforts were respectable but not yet robust. The below infographic outlines the measures exemplary organisations are taking to build resilience.
