Half of UK businesses exposed to cyber risks

Almost half of UK businesses have no documented process in place to respond to a data security breach, according to the latest research by QBE.

The insurer hosted a workshop on the evolution of cyber and data security risk at last week’s Airmic conference to raise awareness amongst risk managers of the problem of cyber and data security risks and their increasing complexity at the same time as being under greater pressure from regulators to effectively manage those risks.

Government estimates that cyber crime costs the UK £27 billion per annum.

Solutions to the problems suggested by the speakers ranged from building strong IT networks, staff cyber and data security risk training, and event response planning, to regulatory awareness and ultimately buying insurance cover, for those times when risk management alone is not enough.

In addition to presentations by QBE, the workshop included Red 24 IT forensic specialist Dan Humphries, and Patrick Hill and Hans Allnutt of DAC Beachcroft LLP, who said that purchasing insurance cover already demonstrates a high standard of cyber risk management.

QBE European operations underwriting manager James Hastings said: “Now that the digital and online economy dominates business life, it presents new risks in the form of data breach and cyber crime. QBE is committed to helping its insurance clients implement risk management measures that can mitigate the growing threat of cyber crime and the Airmic workshop was another opportunity to engage on this important issue.”