Fortune 1000 Cyber Risk Report data reveals the likelihood and cost of cyber events throughout industries, preparing corporations for materiality determination
TEL AVIV, Israel, Oct. 5, 2023 /PRNewswire-PRWeb/ -- Kovrr, the leading global provider of cyber risk quantification (CRQ) solutions, announces the release of its new Fortune 1000 Cyber Risk Report, shedding light on the complex and ever-evolving cyber risk landscape across various industry sectors and the respective financial repercussions companies may consequently face.
"This financial awareness is especially crucial when searching for potentially material incidents and justifying cybersecurity initiatives to the board," says Yakir Golan, Kovrr CEO. "It likewise empowers CISOs and security leaders when communicating risk with boardroom members who may not be well-versed in traditional cybersecurity terminology, enabling them to grasp overall business ramifications more tangibly."
Kovrr's report was published in response to the recent US SEC regulations mandating the disclosure of "material" cyber threats and incidents and offers companies objective benchmarks for determining incident materiality. The results of this report are based on an in-depth analysis of the top US Fortune 1000 companies. Kovrr's models capture a detailed representation of each company's technological profile and simulate yearly cyber event scenarios tailored to each company's exposure to risk.
Harnessing industry insights from previously disclosed breaches, insurance claims data, and incidents that have not been publicly disclosed, Kovrr's models assess the likely frequency and severity of cyber breaches experienced by the included companies.
The Cost of Business: Average Annual Loss of up to $34.4 Million
Central to the report is Average Annual Loss (AAL), a pivotal metric offering a bird's-eye view of potential annual financial losses from cyber incidents. Notably, the Finance and Real Estate industry has the highest AAL at $34.3 million, highlighting its susceptibility to significant financial ramifications. Conversely, the Construction industry boasts the lowest AAL at $7.3 million, reflecting its comparatively lower exposure to cyber risk.
This inevitability of cyber loss serves as a stark reminder of the urgency for boardrooms to adopt a proactive stance in mitigating material cyber risks and tailor cybersecurity programs accordingly.
Preparing for the Financial Impact: The Yearly Cost of a Cyber Event
The report further underscores the financial implications of cyber events, particularly for industries like Finance and Real Estate, Retail Trade, Utilities, and Oil, Gas Extraction, and Mining, which all face a greater than 10% chance of experiencing cyber events costing $50 million or more in a single year and a more than 5% chance of incurring losses exceeding $100 million.
Drilling Down to the Details: Probability and Event Drivers
The Fortune 1000 report also dissects the types of cyber events most likely to affect organizations, shedding light on the probability of high-impact incidents. For instance, the data reveals that the Retail Trade industry's primary threat is data breaches, comprising 47% of all cyber events within the sector.
Conversely, the Services industry is less susceptible to data breaches and more vulnerable to interruptions such as DDoS attacks or data wiping, constituting 52% of total events.
Customized Quantification: Granular Insights for a Deeper Boardroom Understanding
While the Fortune 1000 Cyber Risk Report offers invaluable industry comparisons, it should be seen as a foundational resource. Achieving a deeper understanding of an organization's unique cyber risks requires a granular quantification assessment.
Kovrr's Fortune 1000 Cyber Risk Report stands as a cornerstone for businesses seeking to navigate the complex cyber landscape. It provides the strategic insights organizations need to fortify defenses, make informed decisions about material cyber events, and ultimately safeguard their futures in an era defined by digital vulnerabilities.
The Full Report:
For full access to Fortune 1000 Cyber Risk Report: Determining SEC Materiality With Marketplace Benchmarks, please visit https://www.kovrr.com/reports/fortune-1000-cyber-risk-report.
About Kovrr:
Kovrr's cyber risk quantification platform empowers enterprise decision-makers to manage cyber exposure more effectively by providing an in-depth risk analysis that drives actionable, financially justified decisions. For more information, please visit www.kovrr.com or follow us on Twitter or LinkedIn.
Media Contact
Naomi Ronen, Kovrr, 972 50 709 5870, [email protected]
SOURCE Kovrr
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