According to a report from international financial services provider Allianz, cyber threats rank as a top global business threat in 2024. These attacks, ranging from ransomware attacks, data breaches to other IT disruptions are a top concern for companies worldwide in 2024.
In the U.S. specifically, cyber has replaced business interruption as the leading risk for the year ahead. Coming in second and third globally were business interruption and natural catastrophes on businesses’ list of top concerns.
“The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now — digitalization, climate change and an uncertain geopolitical environment,” said Allianz Commercial CEO Petros Papanikolaou. “Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further in 2024.”
Cyber threats (36 percent of overall responses) has ranked as the most important risk globally for three consecutive years according to data from the Allianz Risk Barometer, which reflects insights from over 3,000 experts. It’s not a trend that is solely representative of the U.S., however. Cyber threats are now considered the top concern in 17 countries, including Australia, France, Germany, India, Japan, the UK and the U.S.
Data breaches (59 percent of respondents) ranked as the highest specific concern, followed by attacks on critical infrastructure and physical assets (53 percent).
The increase in ransomware attacks in 2023 led to increased insurance claims activity, up by more than 50 percent compared with 2022, and fears (53 percent) it will continue into 2024.
The risk of cyber threats applies to companies of all sizes, ranging from large corporations to midsize, and smaller businesses, the report noted. However, there is a noted resilience gap between large and small companies that is widening “as risk awareness among larger organizations has grown since the pandemic with a notable drive to upgrade resilience.”
Given their limited time and resources, smaller businesses often struggle to pinpoint and adequately plan for various risk scenarios. This often extends the recovery period to get their operations back on track.
In 2023 73% of small business owners and executives disclosed encounters with data breaches or cyber invasions within the prior year, according to data from the 2023 Enterprise Influence Synopsis. This highlights the expanding allure of small businesses for online criminals.
The identity theft protection software market in the U.S. is projected to continue to grow, with solutions such as Enfortra becoming utilized by more businesses of all sizes.
