In a study of public documents, Willis Group Holdings found that technology and telecommunications companies estimated their cyber exposures at higher levels than others in the Fortune 1000, an indication that those firms may be underestimating their cyber risk exposure.
The Willis Special Report: 10K Disclosures — How Technology and Telecom Companies Describe Their Cyber Liability Exposures, published today, examines cyber risk disclosures made by the technology and telecommunications (tech/telecom) sector of the Fortune 1000. The study is part of an ongoing Willis series reporting on how U.S. public companies are describing their cyber risks in financial documents.
Some of the key findings of the study include:
- The tech/telecom sector disclosed several cyber exposures at a significantly higher rate than the Fortune 1000, including: loss or disclosure of confidential information, loss of reputation, malicious acts and cyber liability.
- In detailing cyber risk remedies, 44% of tech/telecom companies cited the use of technical safeguards. However, 20% of tech/telecom companies report inadequate resources to limit cyber losses. This indicates that technical protections may not be sufficient to contain some cyber or technology threats.
- 11% of the sector indicated they purchased insurance for cyber exposures. In Willis’s view the rate of cyber insurance may be substantially higher, particularly among some sub-sectors.
The study is available by clicking on the link below.