Cyberattacks could cost companies €6Bn by 2021

The British multinational AON, the the third largest insurance broker in Portugal, has warned that cyberattacks could cost corporations €6Bn a year by 2021.

The broker, which employs 90 staff and enjoyed net revenues of €14.68 million in 2018, has issued a report emphasising that financial losses and damage to the reputation of businesses are the main consequences of IT attacks and hacking.
The report, which was published on Thursday, revealed both the shocking numbers and suggests some solutions to minimise the risk of cyberattacks.
The annual losses from IT attacks could reach €6Bn by 2021 and costs on effective cybersecurity could exceed €1Bn.
In the report, called ‘Prepare for the unexpected: Safeguarding value in the era of cyber risk’, it stresses that the cost to a company’s reputation could have far reaching effects in the long term than the immediate short term losses of data.
Onno Janssen, CEO of Risk Consulting & Cyber Solutions for AON says, “Companies still haven’t grasped the impact that a cyberattack can have on a business, which is why it is crucial to understand “the worst possible scenarios and their impacts and have an effective strategy in place whereby these risks are managed right across the company.”
The report suggests some steps that can be taken in developing an effective strategy of cyber-resilience: the final responsibility for losses and incurred costs from an attack lies at the door of the management; a cyberattack threatens the entire company; a solution should be in place at various levels involving all relevant stakeholders and training for procedures are all critical to prepare a company to effectively meet a cyberattack.