When assessing cyber risks, it is often useful to focus on the most serious threats based on the likelihood and the cost/impact of them occurring. It is extremely important to manage the risks accordingly. Cyber-security researchers have identified a total of at least 57 different ways in which cyber-attacks can have a negative impact on individuals, businesses and even nations, ranging from threats to life, causing depression, regulatory fines or disrupting daily activities. Belfast BT2 7ES Some cyber attacks have the power to disrupt your business immediately. “The reputational damage that an organisation faces following a cyber attack can be difficult to quantify but will certainly hit the bottom line with the potential loss of business from existing customers who may question their trust in the organisation, the financial impact of negative word of mouth, and the associated cost of trying to regain trust in a brand. Cybercrime can impact businesses in several ways, and a cyber-attack has the potential to cause financial and reputational damage to a small business or sole trader. By one estimate, every minute of downtime can cost a business $427. Security breaches can devastate even the most resilient of businesses. The types of cyber crime that have the biggest economic impact include: The loss of IP and business-confidential information. With this dramatic increase in targeted attacks, cyber risk needs to be understood as a collective responsibility and not solely as an issue for IT teams as it has been perceived to be in the past. The Impact of Cyber Attacks on Business Value . During October, we hosted a Roundtable in partnership with Lloyds to help retailers understand and manage their financial exposure to potential cyber-attacks. Although cyber-terrorism may not be able to generate the same effect as a physical explosion, cyber-terrorism can lead to extensive monetary loss. CEOs need to be driving a cyber security strategy that can adapt and take into consideration the function of the whole business to prevent the agonising aftermath of an attack. Keman Huang, Rebecca Ye, Stuart Madnick . nibusinessinfo.co.uk, a free service offered by Invest Northern Ireland, is the official online channel for business advice and guidance in Northern Ireland. 8.5% of the data breaches reported in 2017 involved the financial sector, impacting organizations such as banks, credit … Assessment of a company’s cyber-risk is also now part of their credit assessment, so ways in which companies deal with cyber risk may have an impact on their cost of funding. 0800 181 4422. Cyber attacks often result in substantial financial loss arising from: theft of corporate information; theft of financial information (eg … Cybersecurity Interdisciplinary Systems Laboratory (CISL) Sloan School of Management, Room E62-422 . Cyber attacks can damage your business' reputation and erode the trust your customers have for you. This leads to a second impact on business; consumer confidence. This, in turn, could potentially lead to: The effect of reputational damage can even impact on your suppliers, or affect relationships you may have with partners, investors and other third parties vested in your business. The threat of data breaches continues to increase, with the number of U.S. cybersecurity incidents tracked in 2017 hitting a new record high of 1,579% – a 48% increase over 2016. Loss of Productivity. You can also find more information below on staying on step ahead of Cyber Risk: https://resources.lloydsbank.com/insight/cyber/. The impact of a security breach can be broadly divided into three categories: financial, reputational and legal. The most dangerous cyber-terrorism attacks are those that affect national infrastructure or business systems. 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