Potential impact
The high stakes of cyber risk
Our report stresses that failure to recognize emerging cyber exposures will have swift, catastrophic effects on profitability.
1 in 3
small businesses would not know how to respond to a ransomware attack
92%
of respondents said their finances would be negatively impacted by lost access to critical systems/data
60%
said that their business would become unprofitable within 48 hours
Cyberattacks hit profitability hard and fast
While cyber incidents have far-reaching business impacts, including damage to reputation and decreased customer loyalty, the ability to even stay in business may be the most immediate threat.
Our survey revealed that more than half of businesses would be unprofitable within 48 hours, and nearly all businesses would be unprofitable in just one business week.
Our survey also revealed that businesses in certain industries would become unprofitable faster than others.
| INDUSTRY |
MOST LIKELY TO BE UNPROFITABLE IN LESS THAN TWO DAYS |
|---|---|
| Tech and life sciences | 72.6% |
| Financial services | 70.7% |
| Wholesale | 66% |
| Manufacturing | 62% |
| Education, health and social services | 60% |
As criminals employ more technology to commit fraud, the lines are blurring between fidelity and crime and cyber liability insurance. Businesses may think they are protected through one coverage, but there may be unintended gaps due to inconsistent policy language. Protection gaps are best detected by consolidating insurance coverage with one company that offers broad and specialized business protection.