Amid a wider range of issues to handle, a majority of board members and senior executives responsible for their organization’s cyber risk management had less than a day in the last year to spend focused on cyber risk issues. The findings form part of a new report published today by Marsh, the world’s leading insurance broker and risk adviser, and Microsoft Corp., the leading platform and productivity company for the mobile-first, cloud-first world.
This lack of time for senior leaders to focus on cyber risk comes as concern over cyber threats hits an all-time high, and as confidence in an organization’s ability to manage cyber threats has declined, the 2019 Marsh Microsoft Global Cyber Risk Perception Survey found. The global survey of 1,500 organizations details the current state of cyber risk perceptions and risk management, building on a related survey conducted in 2017.
According to this year’s survey, nearly 80% of organizations now rank cyber risk as a top-five concern, compared to 62% in 2017. Only 11%, however, expressed a high degree of confidence in their ability to assess cyber threats, prevent cyber-attacks, and respond effectively. This is down from 19% in 2017.
For many organizations, strategic cyber risk management remains a challenge. For example, while nearly two-thirds (65%) of organizations surveyed identified a senior executive or the board as a main owner of cyber risk management, only 17% of c-suite executives and board members said they spent more than a few days in the past year focusing on the issue. More than half, 51%, spent several hours or less.
Likewise, 88% of respondents identified their information technology and information security functions as primary owners of cyber risk management, yet 30% of IT respondents said they spent only a few days or less over the last year focusing on cyber risk.
At the same time, organizations continue to embrace new technologies but are uncertain about the risks they bring. Three-quarters (77%) of respondents said they are adopting or have adopted cloud computing, robotics, or artificial intelligence, yet only 36% say they evaluate cyber risk both before and after adoption; 11% don’t evaluate the risk at all.
“We are well into the age of cyber risk awareness, yet too many organizations still struggle with creating a strong cybersecurity culture with appropriate levels for governance, prioritization, management focus, and ownership,” said Kevin Richards, Global Head of Cyber Risk Consulting, Marsh. “This places them at a disadvantage both in building cyber resilience and in confronting the increasing complex cyber landscape.”
“In the era of transformational technology and more interconnected supply chains, the cyber risk management practices and mindsets of yesterday no longer suffice and may actually inhibit innovation,” said Joram Borenstein, General Manager, Cybersecurity Solutions Group at Microsoft. “It is incumbent upon senior leaders to focus on these issues for the welfare of their organizations, their customers, their employees, and beyond.”
Marsh is the world’s leading insurance broker and risk adviser. With over 35,000 colleagues operating in more than 130 countries, Marsh serves commercial and individual clients with data driven risk solutions and advisory services. Marsh is a wholly owned subsidiary of Marsh & McLennan Companies NYSE: MMC), the leading global professional services firm in the areas of risk, strategy and people. With annual revenue over US$15 billion and 75,000 colleagues worldwide, MMC helps clients navigate an increasingly dynamic and complex environment through four market-leading firms: Marsh, Guy Carpenter, Mercer, and Oliver Wyman. Follow Marsh on Twitter @MarshGlobal; LinkedIn; Facebook; and YouTube, or subscribe to BRINK.