How to save your firm billions lost in Cyber crime annually

On average, companies spend atleast Sh1.22 billion annually on mitigating or paying for losses arising from cyber crimes.

According to the 2017 cost of cyber crime report the cost is a 23 per cent rise compared to that recorded in 2016, and a 62 per cent rise in a span of five years from Sh746.56 million recorded in 2011.

The global report, released in September this year, the spending priorities of this firms show that much of this money is misdirected towards security capabilities that fail to deliver the greatest efficient and effectiveness.

“With cyber attacks on the rise, successful breaches per company each year has risen more than 27 percent, from an average of 102 to 130. Ransomware attacks alone have doubled in frequency, from 13 percent to 27 percent, with incidents like WannaCry and Petya affecting thousands of targets and disrupting public services and large corporations across the world,” the report states.

In Kenya, large corporations, largely comprising of financial institutions, majorly banks and government institutions lost an estimated Sh17.7 billion in 2016 alone as reported by the communications authority.

The solution is intended to protect organizations against catastrophic cyber risk, and help them save at least Sh400 million on average from a single breach.

This was a 14.67 per cent from Sh15 billion loss made in 2015.

Early this year, the internet society predicted that the fund may go up to Sh20 billion by end of December this year.

Corporations in the financial, utilities and energy, technology and software service are among the top affected and targeted industries by Cyber crimes with each spending and combined a combined cost of between Sh13.89 billion to Sh18.85 billion on annual basis.

With challenges such as a dip in credit lending by financial institutions due to the interest rate cap laws, political uncertainties that lead to a fall in the country’s gross domestic product hence a fall in profits among other reasons, it is only important for firms to prevent further losses from cyber crimes by getting a cyber insurance policy from AoN Kenya.

Using the Aon Cyber Enterprise Solution-a property/casualty and Internet of Things insurance policy, firms will be able to get comprehensive and integrated enterprise-wide coverage against cyber risk.

The solution is intended to protect organizations against catastrophic cyber risk, and help them save at least Sh400 million on average from a single breach.

In addition, it is expected to hoard at least 83 per cent of firms who have no written plans about keeping their businesses cyber secure. This is in addition to 60 per cent of small and medium enterprises that collapse within the first six months after experiencing a cyber attack, mainly due to small budgets.


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About the Author

Muhatia
Muhatia is the Managing Editor of Biz News Media Reach him via editor@biznews.co.ke