Canadian Underwriter

Cyber threats top concern over other business risks for execs: survey

February 7, 2013   by Canadian Underwriter

Print this page

Corporate executives are more concerned about cyber threats than other major business risks, a new survey sponsored by insurance giant AIG suggests.

ThreatMore than 85% of the 258 executives surveyed said they were very or somewhat concerned about cyber risks to their organizations, compared with the group’s response to six other areas of risk, including income loss (82%), property damage (80%), and securities and investment risk (76%).

Out of executives and insurance brokers, 80% said they find it difficult to keep pace with changing cyber threats, AIG noted.

For most executives and brokers (69%), the reputational risk involved with a cyber attack is greater than the financial risk, the company also said.

Other findings from the survey include:

  • More than seven in ten (75%) executives and brokers say legal compliance issues are making companies think more about cyber risks.
  • The vast majority of brokers and executives (82%) believe hackers are the primary source of cyber threats, though a significant portion of those surveyed (71%) also perceive human error as a significant component of cyber risk.

The survey was conducted for AIG by Penn Schoen Berland (PSB), which surveyed 323 risk managers, IT decision makers, C-suite executives, and brokers in the United States and Canada who play a role in selling insurance policies or determining insurance programs within their organizations.

The survey included a mix of AIG customers and other companies, including 60 companies with revenue between $1 billion and $10 billion, mid-market businesses with revenue between $10 million and $1 billion, as well as large and mid-sized broker partners. These interviews took place October through November 2012.