Cyber risk has entered the top 10 global risks as identified by clients of Aon Global Risk Solutions for the first time, making an appearance in ninth position.
Damage to brand and reputation was cited as the top overall concern facing global organisations, further underscoring the increasing importance of cyber risk as it has been regularly linked to brand and reputation issues in the wake of data breaches.
The 1,400 survey respondents to the Aon Global Risk Management Survey included CEOs, CFOs and risk managers providing comparative insight into different perceptions of risk.
Typically, financial and economic risks including commodity price risk, economic slowdown and technology failure were seen as damaging at corporate level, with risk managers focused on liability-related risks such as cyber, property damage and third party liability.
Stephen Cross, chief innovation officer at Aon Risk Solutions, said: “It’s little surprise to see cyber risk enter the top 10 at the same time we are seeing increasing concern about corporate reputation as the two issues are a great example of the interconnectivity of risk.”
“What is surprising was the lack of alignment between the board and the risk manager. Such diverse views illustrate how imperative it is that the board of directors have effective and regular communication with risk managers to effectively assess and mitigate the company’s risk exposure.”
