Cyber risk in top 10 for first time: Aon

Cyber risk has become a top ten risk factor for the first time, according to Aon Risk Solutions.

The risk management business of Aon revealed that cyber risk is now ranked ninth on the list of key risks identified by a survey of 1400 of Aon’s clients.

The top concern for global organisations was revealed to be damage to brand and reputation. Aon believes this underscores the increasing importance of cyber risk as it has been regularly linked to brand and reputation issues in the wake of data breaches.

Across nearly all the regions and industries, damage to brand and reputation was ranked as a top concern.

“This can be attributed to the growing challenges businesses are facing amongst the risks found in the top 10 list, such as cyber risk, but also including business interruption, property damage and failure to innovate,” said the risk manager.

Stephen Cross, chief innovation officer, Aon Risk Solutions, said: “The insights provided by this survey help us understand how risks are changing as the global environment evolves.  It’s little surprise to see cyber risk enter the top ten at the same time we are seeing increasing concern about corporate reputation as the two issues are a great example of the interconnectivity of risk.

“What is surprising was the lack of alignment between the board and the risk manager. Such diverse views illustrate how imperative it is that the board of directors have effective and regular communication with risk managers to effectively assess and mitigate the company’s risk exposure.”

Rory Moloney, chief executive officer, Aon Global Risk Consulting, added: “This is one of the most comprehensive and insightful surveys available on risk mitigation and reveals a number of different challenges driven by today’s globally inter-dependent environment.

“While new risks such as cyber have moved to centre stage, established risks like damage to reputation or brand, are taking on new dimensions and complexities. The interconnected nature of these risks reinforces the importance of strategic risk management in every organisation."