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Companies Double Cyber Security Spend yet Still Lack Basic Knowledge

According to a new report from PricewaterhouseCoopers (PwC). What’s more, the impact of these incidents can be so significant that nearly 4 out of 5 companies experience downtime as a result. During these periods of business disruptions, you may experience further knock-on effects such as extra expenses, supply chain disruptions and reputation damage.

To combat this threat, companies are spending an average of £6.2 million on cyber security, which is double what they spent in 2015. Yet, whilst companies are spending more on cyber security, many are foregoing the additional cost of cyber cover, which leaves them dangerously exposed. Only 38 per cent of companies are insured against cyber threats, according to PwC.

To ensure that cyber defences are effective, companies need robust cyber cover as well as a holistic understanding of how cyber security works and what the common risks are—which a significant number of companies still lack.

Merely 28 per cent of companies have board members that contribute to the development of a cyber security strategy, whilst only 33 per cent have board members that are directly involved in setting up their cyber security budgets. This minimal participation can inadvertently create potential gaps in a company’s cyber security that criminals could exploit.

To ensure that your company’s cyber security system is comprehensive and effective, you should provide annual cyber security training for your entire staff—from interns all the way up to directors and officers. This training should include how to identify common cyber threats, password best practices and the procedure for a cyber security breach. And of course, all businesses need comprehensive cyber cover.

If your company is interested in additional guidance on how to develop an effective cyber security system, the National Cyber Security Centre has released a 10-step guide.

The content of this article is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2016 Zywave, Inc. All rights reserved.

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