Explore the global impact of cyber risk in today's world with insights on geopolitical tensions, customer expectations, and economic conditions. Drawing from our white paper by ORX Cyber, we delve into the pivotal emergence of cyber risk as a material concern.
In the past decade, organisations have been enhancing their cyber risk management strategies. However, with the rapid pace of digital transformation, the emergence of new geopolitical threats, and the relentless innovation of cyber criminals, the landscape of cyber risk has reached a critical turning point.
Global factors impacting cyber risk
(Geo)political tensions
(Geo)political tensions across the globe are intensifying the challenges of understanding and responding to cyber threats. The real threat of cyber warfare, instigated by both state and non-state actors, has significantly heightened in the past two years. Recent world events, such as the cyber attacks linked to the war in Ukraine, have highlighted how these tensions can quickly and significantly influence risk exposure.
Customer expectations
A change in customer expectations and behaviours over recent years, led to the demand for seamless availability of financial services around the clock. This much greater reliance on digital journeys means there is a high potential for serious reputational impact if a service is unavailable.
Reliance on technology and third-parties
Greater reliance on technology and third-party partners as the financial services ecosystem opens and the drive for digitalisation and automation continues. The rise of digitisation increases the cyber attack surface which, in tandem with legacy systems, creates vulnerabilities.
Global economic conditions
Worsening global economic conditions can drive societal vulnerabilities, leading to an increase in cyber-related fraud.
To manage cyber risk consciously and safely, there is a need for cyber risk management teams to ensure they are commercial, demonstrate value, keep pace with business innovation and step away from legacy processes and approaches.
Read the full white paper to find out more about cyber risk management.
