Aon Survey Reveals Major Cyber Incidents Resulted In A Nine Percent Decrease In Shareholder Value
Aon plc (NYSE: AON), a leading global professional services firm, today published its 2023 Cyber Resilience Report, revealing that, on average, a major cyber incident resulted in a 9 percent decrease in shareholder value – over and above the market – in the year following the event. The report serves as a guide to help business leaders benchmark their organization’s cyber risk maturity against peers and make better decisions when managing cyber across six risk areas: cyber, operational, supply chain, insider, reputational and systemic.
Aon’s global report is based on proprietary client data collected from Aon’s Cyber Quotient Evaluation (CyQu), Aon’s Ransomware Supplemental Application and Aon’s Operational Technology Application. CyQu is a global eSubmission and risk assessment platform that helps organizations better manage cyber risk by providing visibility into cyber exposures and insurability drivers.
“Companies have experienced new forms of volatility over the last four years, experiencing a rise in the frequency and severity of cyber threats and ransomware events, followed by a cyber insurance market with rising premiums and retentions and significant underwriting scrutiny.
“We observe that the C-suite increasingly sees that cyber events have the potential to impact all areas of their business. Achieving cyber resilience is a recurring theme in board room discussions and the threat is now being addressed from a holistic risk perspective.”
Additional highlights from the global report include:
Aon also published key insights by industry, including:
“Achieving cyber and business resilience is a challenging endeavor for any organization. Through Aon’s broking and consulting capabilities, we help organizations navigate volatility and more appropriately minimize financial, operational and reputational risk.”
Aon collected CyQu self-assessment scores from 2,946 client organizations in Asia Pacific, EMEA, Latin America, North America and the UK in 2020 and 2022. The study focused on six areas of risk – cyber, insider, operational, reputational, supply chain and systemic – in the finance and insurance, healthcare and manufacturing industries. Aon plans to release additional data and insights, including regional findings, later this year.
Aon’s CyQu evaluation features patent-pending analytics methodology and is rooted in both ISO standards and the National Institute of Standards and Technology framework. The framework is regularly adjusted to contemplate feedback from the cyber insurance underwriting community. Accepted by all major U.S. markets, CyQu and its Supplemental applications help align over 65 cyber insurers around a single client insurance submission process. The CyQu self-reported assessment scores risk in 35 critical controls across nine security domains to offer greater insight into an organization’s most significant risks and control effectiveness.
View the 2023 Cyber Resilience Report here. To learn more about cyber resilience, access Aon’s H1 2023 E&O Cyber Report here, read about how to mitigate insider threats here and listen to episode 42 of the “On Aon” podcast here.
This article was originally published by Aon.
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