Cyber Risks Top the List of Business Leader Concerns as Cyberattacks Rise 150% Since 2015

Forty percent of construction decision makers feel their business is becoming somewhat more risky with each passing year, Travelers Risk Index shows.

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A recent survey by The Travelers Companies, Inc. shows 40% of business leaders in the construction industry feel their business is becoming somewhat more risky with each passing year. While other business risks rose to the top for the industry, cyber threats were on average the top priority among all industry leaders participating in the 2021 Travelers Risk Index.

The national survey of 1,200 business leaders, commissioned by Travelers and conducted by Hart Research, showed 59% of respondents worry some or a great deal about cyber threats, with security breaches, system glitches and unauthorized access to bank accounts topping the list of cyber-specific concerns. Yet, only 61% indicated feeling extremely or very confident in their company’s cyber practices.

Less than half of survey respondents report adopting basic preventive measures, such as multifactor authentication, despite an increase in frequency and severity of cyberattacks occurring nationwide. According to the survey, a quarter of participants said their company has been a cyber victim – a 150% increase from 2015 – with nearly half (47%) reporting that the event happened within the past 12 months.

Travelers InfographicThe Travelers CompaniesOther key survey findings include:

  • The percentage of respondents who said their company suffered a security breach where someone hacked into a system rose to 46%, a nearly 40% increase compared to 2020.
  • More than half (55%) of companies believe it is inevitable that at some point they will be the victim of a data breach or cyberattack.
  • The percentage of respondents whose companies have purchased a cyber insurance policy rose to 56% in 2021 compared to 39% in 2018.

Construction Business Concerns Mount

While business leaders in the construction industry also see cyber threats as a risk, other business risks saw a higher priority, including medical cost inflation (61%), financial issues (57%) and supply chain issues (57%). That said, as construction businesses become more technologically advanced, cyber risks and cyber security are becoming an ever-expanding threat to their operations.

Unsurprisingly, the survey shows 87% of construction business decision makers are currently somewhat, very or extremely reliant on their computer systems functioning properly for their businesses to operate. Even so, a sizable percentage (20%) said they are not knowledgeable about cyber events that could impact their companies.

The survey also shows:

  • Most (72%) construction companies rely on firewalls and virus protection to prevent and manage cyberattacks.
  • Just 64% conduct background checks on employees.
  • And just 30% have written a business continuity plan in the event of a cyberattack.

Expanding the awareness of cyber risks to businesses and steps that can be taken to prevent them has gained a sense of urgency even at the national level. Recently, Alan Schnitzer, chairman and CEO of Travelers, joined President Biden and members of his Cabinet and national security team, as well as private sector and education leaders, to discuss how to improve the nation’s cybersecurity. Following the meeting, Schnitzer stated:

“According to the Travelers Risk Index, which surveys U.S. business leaders, cyber risk is the number one concern across companies of all sizes. At Travelers, we see firsthand the devastating effects that a breach can have on a business, and we understand that even small changes can have a big impact on data security. For instance, research suggests that implementing affordable mitigation controls, such as multifactor authentication, could prevent the vast majority of ransomware attacks. Adopting best practices for cyber hygiene will make our businesses – and our country – safer.”

In announcing the survey results, Tim Francis, enterprise cyber lead at Travelers, added, “We constantly work to raise awareness of the serious and costly consequences that cyber threats can pose. These survey results show that despite cyber risks being the top concern, too many companies are unprepared to deal with them. It’s crucial that businesses take the necessary actions to protect their data and assets, especially with so many employees continuing to work remotely.”

To learn more about managing cyber security and risks, visit https://www.travelers.com/resources/business-topics/cyber-security

Information provided by The Travelers Companies and edited/enhanced by Becky Schultz.

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