Security Experts:

Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cyber Insurance

Cyber Risks Can Cause Disruption on Scale of 2008 Crisis: Study

GENEVA – Organizations must dramatically improve their response to cyber risks to avoid a new global shock on the scale of the financial crisis that rocked the world in 2008, a study showed Tuesday.

GENEVA – Organizations must dramatically improve their response to cyber risks to avoid a new global shock on the scale of the financial crisis that rocked the world in 2008, a study showed Tuesday.

Zurich Insurance said in a statement that even cyber security professionals did not have a clear overview of all the interconnected risks organizations can face. The Swiss insurance group, which has produced a report on cyber risks in cooperation with the Atlantic Council think tank, warned that “a build-up in these risks could create a failure on a similar scale to the 2008 financial crisis”.

Subprime mortgages were at the root of that crisis which began when the US housing market collapsed, dragging down major banks, and causing panic on world financial markets.

The Zurich Cyber Risk Report said IT risks could pose a threat of a similar scale.

“Few people truly understand their own computers or the Internet, or the cloud to which they connect, just a few truly understood the financial system as a whole or the parts to which they are most directly exposed,” said Zurich risk chief Axel Lehmann.

Outsourcing of server management for example or creating direct connections between organizations for things like corporate joint ventures makes it more difficult to get an overview of the risks involved, Zurich said.

The risk of disruption in the Internet infrastructure itself, malware attacks and major international conflicts can also create system-wide risk, it added.

“The Internet is the most complex system humanity has ever devised. Although it has been incredibly resilient for the past few decades, the risk is that the complexity which has made cyberspace relatively risk-free can, and likely will, backfire,” Lehmann said. 

Related Reading: When Your Insurer Says “Um, No” to Cyber Protection

Related Reading: AIG Expands Coverage to Include Physical Damage Caused By Cyber Attacks

Written By

AFP 2023

Click to comment

Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Data Breaches

GoTo said an unidentified threat actor stole encrypted backups and an encryption key for a portion of that data during a 2022 breach.

CISO Strategy

Cybersecurity-related risk is a top concern, so boards need to know they have the proper oversight in place. Even as first-timers, successful CISOs make...

Risk Management

A threat-based approach to security often focuses on a checklist to meet industry requirements but overlooked the key component of security: reducing risk.

Incident Response

Cygnvs emerges from stealth mode with an incident response platform and $55 million in Series A funding.

Cybercrime

A recently disclosed vBulletin vulnerability, which had a zero-day status for roughly two days last week, was exploited in a hacker attack targeting the...

Risk Management

CISA has published a report detailing the cybersecurity risks to the K-12 education system and recommendations on how to secure it.