Business Challenges

"What type of cyber threat do you see as the biggest challenge for businesses?"

August 02, 2018 Photo

What type of cyber threat do you see as the biggest challenge for businesses?

“Headlines are dominated by notorious data thefts. Receiving less attention is malicious data manipulation. Hackers alter, not just steal, electronic information, sometimes for profit (e.g., altering payroll transfers) or simply for disruption (e.g., compromising intellectual property). Businesses must protect against these increasingly virulent schemes.”

Brian C. Bassett, Partner, Traub Lieberman Straus & Shrewsberry LLP. CLM Member since 2013.

“Smart device usage and connectivity to the Internet of Things (IoT) is one of the fastest growing cyberthreats. At the current speed of production, corporations and manufacturers seemingly give little forethought as to how the devices will be protected from cybersecurity threats. As participation in the IoT expands, businesses and consumers will be at risk from emerging and evolving threats.”

Art Ehuan, Managing Director, Alvarez & Marsal. CLM Fellow since 2018.

“The two biggest challenges for businesses are (1) staying out in front of constantly evolving threats, and (2) maintaining compliance with all applicable state, federal, and international laws. Many businesses also fail to appreciate that some of most dangerous threats are internal or caused by noncompliance with existing security measures.”

Kevin C. Cain, Attorney, Sulloway & Hollis PLLC. CLM Member since 2013.

“A cyberattack rendering computer systems unusable is a serious emerging threat. The WannaCry and NotPetya malware attacks in 2017 hobbled businesses for weeks and led to tens or hundreds of millions of dollars of loss. Such attacks challenge a company’s defenses and its financial, managerial, and reputational ability to recover.”

William A. Boeck, SVP, Insurance & Claims Counsel, Lockton Financial Services, Cyber Technology Practice. CLM Fellow since 2018.

$2.2 Million

Average cost of cyberattacks to small- and medium-sized businesses in 2017 from both damage or theft of IT assets ($1 million) and disruption to normal operations ($1.2 million).

Source: Ponemon Institute

27.4%

Percent net increase in average
annual number of security breaches.

Source: Accenture

68%

Percent of cyberbreaches that take months or longer to discover.
Source: Verizon

600%

Percent increase in attacks against Internet of
Things devices from 2016 to 2017.

Source: Symantec

$6 trillion

Estimated cost of cybercrime to the world by 2021.

Source: Herjavec Group

 

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About The Authors
Phil Gusman

Phil Gusman is CLM's director of content.  phil.gusman@theclm.org

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