Cyber Attacks Rank Alongside Natural Disasters

The economic damage of a successful major cyber-attack against a large cloud services provider could be similar in scale to the financial impact of a destructive hurricane.

The destructive tropical cyclone hurricane Katrina hit the US in 2005, causing $108bn in damage, but that could be exceeded by the cost of a major cyber-attack, according to an expert. "To compare the degree of economic cost, estimates now are that if attackers took down a major cloud provider, the damages could be $50bn to $120bn, so something in the range of a Sandy event to a Katrina event," said John Drzik, president of global risk and digital at insurance broking and risk management company Marsh. He was speaking at the launch of the World Economic Forum (WEF)'s Global Risks Report 2018.

"The aggregate cost of cyber is now estimated at over $1tn a year of economic cost, verses roughly $300bn experienced in 2017 lost to natural catastrophes," said Drzik.

The analysis by the international body, which brings together business, political, academic, and other leaders to help shape the global agenda ranks cyber as one of the top three risks along-side natural disasters and extreme weather.

Despite 2017 being a record year for the financial cost of extreme weather and natural disasters, the economic damage of cyber-attacks had a far greater global impact.

However, despite the potential damage which can be caused by cyber-attacks, governments and supporting agencies are far less well-equipped to deal with a major cyber-incident than they would be to deal with natural disasters. There's a FEMA response team for cyber-attacks, but it isn't as large as other parts of the agency.
"Think about the comparative scale," said Drzik. "Think about the government agencies as well as voluntary organisations which focus on response to natural disasters, verses national cyber-agencies -- they're much less resourced. They have some capacity, but not enough to deal with what is a significantly growing risk."

There's also the additional issue that, like extreme weather and natural disasters, cyber-attacks are a global issue but, as the WEF report highlights, there are elements of the current geopolitical environment that provide huge barriers for nation states coming together to collaborate on protecting against hacks and breaches.

That's dangerous, given there's barely any real agreement on what's acceptable and what needs managing in cybersecurity and cyberwarfare."International protocols have yet to really emerge in dealing with cyber risk and those are going to be needed as well. But, in the geopolitical climate we're in, it's hard to get to multilateral agreements," he said. "All of this paints a challenging picture for the defence against cyber risk."

ZDNet

You Might Also Read:

Companies Are Buying Cyber Insurance 'in mad panic':

Global Cyber Attack Could Cost $53Billion:

Cyber Insurance Report 2017 - 2018 (£):
 

 

« You Probably Don’t Know All the Ways Facebook Tracks You
In S.Africa The Cybersecurity Skills Gap Is A Chasm »

ManageEngine
CyberSecurity Jobsite
Check Point

Directory of Suppliers

LockLizard

LockLizard

Locklizard provides PDF DRM software that protects PDF documents from unauthorized access and misuse. Share and sell documents securely - prevent document leakage, sharing and piracy.

DigitalStakeout

DigitalStakeout

DigitalStakeout enables cyber security professionals to reduce cyber risk to their organization with proactive security solutions, providing immediate improvement in security posture and ROI.

Tines

Tines

The Tines security automation platform helps security teams automate manual tasks, making them more effective and efficient.

ZenGRC

ZenGRC

ZenGRC (formerly Reciprocity) is a leader in the GRC SaaS landscape, offering robust and intuitive products designed to make compliance straightforward and efficient.

TÜV SÜD Academy UK

TÜV SÜD Academy UK

TÜV SÜD offers expert-led cybersecurity training to help organisations safeguard their operations and data.

Software Factory

Software Factory

Software Factory develops custom-built high-performance software solutions and products for applications including industrial cyber security.

Mitek Systems

Mitek Systems

Mitek's global mobile capture and identity verification technology optimizes the digital user experience for thousands of financial services organizations.

AdaptiveMobile Security

AdaptiveMobile Security

AdaptiveMobile Security, a world leader in mobile network security, protecting more than 2.2 billion subscribers worldwide.

Horiba Mira

Horiba Mira

Horiba Mira is a global provider of automotive engineering, research and test services including services and solutions for automotive cybersecurity.

Nucleon Security

Nucleon Security

Nucleon Endpoint Detection and Response EDR is the most effective way to protect the value created by your organization against any threat.

Risk Strategies

Risk Strategies

Risk Strategies is a leading specialty risk management consultancy and insurance broker offering smarter, practical approaches to risk mitigation including Cyber Liability insurance.

South West Cyber Resilience Centre (SWCRC)

South West Cyber Resilience Centre (SWCRC)

The South West Cyber Resilience Centre (SWCRC) is led by serving police officers, as part of a not-for-profit partnership with business and academia.

Evo Security

Evo Security

Evo Security is an Identity and Access Management company focused exclusively on serving MSPs, MSSPs and their SMB and Mid-Market customers.

SecurityLoophole

SecurityLoophole

SecurityLoophole is an independent cyber security news platform with global coverage. Latest updates, reports, news and events related to cyber security.

Mobilen Communications

Mobilen Communications

Mobilen are dedicated to providing our customers with the highest level of secure data in transit and to bring privacy back to a mobile world.

Aspiron Search

Aspiron Search

Aspiron Search is a niche-focused Cybersecurity search firm that works exclusively with venture-backed Cybersecurity firms.

Invisinet Technologies

Invisinet Technologies

Invisinet is a cybersecurity technology company specializing in innovative solutions that protect network infrastructure and critical assets from advanced threats.

Blackwired

Blackwired

Blackwired has established a new category in cyber security with an intelligence-led model based on the USMC’s Combat Hunter programme ‘Left of Bang’.

EK3 Technologies

EK3 Technologies

EK3 Technologies mission is to provide comprehensive cybersecurity and IT solutions that allow our clients to focus on sustaining their business.

National Cyber Force (NCF) - UK

National Cyber Force (NCF) - UK

The National Cyber Force (NCF) is a partnership between defence and intelligence.