Cyber driven business interruption threatens energy sector

Energy executives are increasingly concerned about the impact of cyber-attacks on their operations, according to insurance broker Marsh.

Over three-quarters (76 percent) of respondents to a survey cited business interruption (BI) as the most concerning consequence of a cyber-attack for the energy industry.

The report looks at the most concerning cyber loss scenarios for energy executives, the industry’s understanding of cyber exposures, and how organisations plan to manage these risks in the future.

Despite more than half of energy executives naming cyber as a top-five risk, 54 percent of energy executives have not quantified or did not know what their worst possible loss exposures could be.

Of the energy executives participating in the survey, 26 percent said they were aware that their company had been victim to a successful cyber-attack in the past 12 months.

The energy industry plans to invest more in cyber risk management, with 77 percent of energy executives surveyed saying their organisations will increase levels of investment in cyber risk management, while 26 percent plan to purchase or increase their cyber insurance.

“As the energy industry relies more on interconnectivity as a result of greater digitalisation, the potential for cyber-attacks to cause severe disruption to operations, loss of data, and, consequently, high financial losses, should be a key concern for energy executives,” said Andrew Herring, EMEA energy and power practice leader.

“While it is encouraging that three-quarters of respondents plan more investment in cyber risk management, it is worrying that over half questioned have yet to quantify their exposures. For those firms that have not put plans in place to mitigate and manage attacks or have not measured their cyber exposure, now is the time to take steps to be prepared for the impact an attack could have on their operations and systems.”

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