With the continuous innovation of new technologies, hackers and cybercriminals have more access to sensitive company information. Without proactively implementing security measures, companies can become prime targets for attacks.
According to our proprietary Business Insurance Trends survey results, cyber and data issues are among the top risks businesses face, with 75% of U.S. business leaders being extremely or very concerned about cybersecurity and data privacy. Here’s how organizations can ensure they’re protecting themselves against these threats.
Common cybersecurity and data privacy threats businesses face
Technological advancements enable businesses to automate manual tasks and streamline operations. However, innovations can also invite risks. In fact, 52% of respondents said tech advancements like AI, advanced imaging, data analytics, automation, and more will lead to new challenges for their businesses.
There were 2,365 reported cyberattacks in 2023, with a total of 343,338,964 victims, according to the ITRC Annual Data Breach Report. This was 72% more data breaches than in 2021, the year that held the previous record. With the average data breach costing businesses $4.88 million, businesses must be aware of leading cybersecurity threats, including:
Artificial intelligence
While the use of AI systems has introduced advancements, it has also created unintended risks. One of the primary concerns is the exposure of sensitive information through large language models (LLMs). These models, trained on massive datasets, can sometimes reveal proprietary or confidential data that was never intended for public release.
Cybercriminals exploit AI’s capabilities, particularly in evolving phishing schemes and business email compromises. By leveraging AI, attackers can create more convincing and sophisticated deception tactics, making it difficult for users to discern between legitimate and malicious communications.
Ransomware and malware
Ransomware has become a prominent cyber threat in the digital landscape, where attackers encrypt a victim’s files and demand payment, typically in cryptocurrency, in exchange for restoring access. This can lead to substantial financial and operational disruptions.
Beyond a ransomware attack, various forms of malware—including viruses, worms, trojans, and spyware—continue to emerge. These malicious programs are designed to infiltrate systems, steal sensitive information, disrupt operations, or even cause irreparable damage to critical infrastructure. The growing complexity of these attacks makes robust security measures and timely response protocols essential for mitigating risks and protecting organizational assets.
Advanced persistent threats
Advanced persistent threats are prolonged, targeted assaults that allow intruders to infiltrate a network, often remaining undetected for months or even years. During this time, they gather intelligence, steal sensitive data, or lay the groundwork for more significant disruptions. Advanced persistent threats are typically organized by well-funded, highly skilled cybercriminals, such as nation-states or organized crime groups, aiming to achieve strategic objectives.
The covert nature of these attacks highlights the need for continuous monitoring, advanced detection systems, and a comprehensive response plan for cyber incidents. With a response plan in place, businesses can eliminate the potential threat before it causes substantial damage.
The differences between threats, vulnerabilities, and consequences
Before an organization can proactively protect its digital assets, it’s helpful to understand the distinction between threats, vulnerabilities, and consequences. Each plays a distinct role in the security landscape, and addressing them can help tailor defenses more effectively:
- Vulnerabilities: These are weak points within an organization’s systems or processes that threats can exploit. They can range from outdated software that lacks the latest security patches to human factors, such as employees who are unaware of proper cybersecurity practices. Vulnerabilities also include misconfigurations, unencrypted data, and insufficient access controls that can make it easier for attackers to breach systems. Identifying and mitigating vulnerabilities by conducting a regular cyber risk assessment and vulnerability scan and pursuing employee training is key to reducing the attack surface that cybercriminals can target.
- Threats: These are potential dangers or harmful events that could exploit weaknesses in a system. Threats can come in many forms, such as cybercriminals launching phishing campaigns, ransomware attacks, or malicious insiders attempting to steal data. They are external or internal actors with the intent or capability to cause harm, and they evolve continuously as technology advances and cyberattack techniques grow more sophisticated. Businesses remain vigilant in identifying and anticipating threats by monitoring the cybersecurity landscape and implementing tools like cyber threat intelligence platforms to stay ahead of any potential risk.
- Consequences: These are the outcomes or impacts that occur when a security threat successfully exploits a vulnerability. The consequences of a cyberattack can be far-reaching and severe, affecting not only an organization’s finances but also its reputation, legal standing, and operational stability. For instance, a data breach could lead to regulatory penalties, loss of customer trust, disruption of services, and costly recovery efforts. By understanding the potential consequences of specific threats, organizations can prioritize their cybersecurity investments and response plans, ensuring they protect their most critical assets and minimize the overall damage in the event of a breach.
By clearly distinguishing between these elements, businesses can develop a well-rounded risk mitigation strategy that emphasizes proactive threat identification, vulnerability management, and contingency planning to mitigate the adverse effects of potential attacks.
How businesses can keep cyber risks at bay
To effectively mitigate cyber risks, businesses must adopt a multifaceted approach that includes advanced technology, proactive measures, and well-coordinated response strategies. One powerful cyber risk management tool is predictive analytics, which leverages AI applications to assess and interpret workforce behavior and performance.
By using this data, businesses can identify potential vulnerabilities, such as insufficient technology training or unsafe digital habits, allowing them to address these issues before they lead to breaches. Predictive analytics also helps to pinpoint the additional training needs of employees, enhancing their ability to navigate technology securely and prevent inadvertent risks.
Equally important is maintaining strong cyber hygiene within an organization. This starts with robust patch and vulnerability management programs, where patches—updates released by software vendors to fix security flaws—ensure that all systems are up-to-date and free from exploitable weaknesses. Additionally, business leaders should implement secured and encrypted backups to safeguard their data against potential threats, such as a ransomware attack.
Coupled with these technical measures, regular employee training and awareness programs play a critical role. By educating staff on the latest cybersecurity threats and best practices, companies can foster a culture of vigilance and responsibility, significantly reducing the chances of human error leading to security breaches.
In the event of a cyber incident, a well-structured incident response plan is crucial. This plan should clearly outline the roles and responsibilities of team members during an attack, ensuring that everyone knows how to act swiftly and decisively. Establishing clear communication protocols is vital to prevent confusion and delays during the response, allowing teams to work cohesively under pressure.
A comprehensive incident response plan not only helps minimize damage during an attack but also strengthens an organization's overall cyber resilience, ensuring faster recovery and better preparedness for future threats.
What’s included in an incident response plan?
A formal incident response plan is a written document that helps an organization before, during, and after a cybersecurity incident. According to the Cybersecurity and Infrastructure Security Agency, this plan should include a cybersecurity list of key people who may be needed during a crisis. On top of that, the document should note the following elements:
- Communication plan: How to communicate internally and externally during an incident
- Containment procedures: How to limit the damage of an event, like isolating systems or disabling network connections
- Eradication procedures: How to remove all traces of the security threat, such as disabling user accounts or deleting malware
- Incident response framework: The organization’s approach to incident response, which includes preparation, detection, containment, eradication, recovery, and post-incident activities
- Key performance indicators: A way to measure a response plan’s effectiveness
- Post-incident improvements: Ways the organization can learn from the incident and prevent similar problems in the future
- Recovery procedures: How to restore normal operations, including restoring from backups or rebuilding systems
- Roles and responsibilities: A clear definition of who is responsible for what
Cybersecurity best practices
Businesses could follow these best practices to safeguard sensitive data, protect systems, and ensure long-term resilience in a constantly changing threat landscape:
Regular software updates and patch management
One of the simplest yet most effective defenses against cyberattacks is keeping all software, applications, and operating systems up to date. Cybercriminals often exploit vulnerabilities in outdated software, so establishing a regular patch management schedule ensures that these weaknesses are addressed as soon as possible. Automated patching solutions can further streamline this process.
Multi-factor authentication
This adds a layer of protection by requiring two or more verification methods before granting access to accounts or systems. This practice helps secure accounts even if login credentials are compromised, making it significantly harder for unauthorized users to gain access.
Strong password policies
Encourage the use of complex, unique passwords for all accounts and systems, and implement policies that require regular password updates. Password management tools can help employees securely store and manage their credentials without relying on easily guessed passwords.
Data encryption
Encrypt sensitive data both at rest and in transit to protect it from unauthorized access or theft. Whether stored in databases, shared over networks, or kept in cloud environments, encryption adds a critical layer of security to ensure that even if data is intercepted, it remains unreadable.
Network security
Use firewalls, intrusion detection systems, and intrusion prevention systems to monitor and protect the network from unauthorized traffic and malicious activity. Segmenting networks can also help prevent attackers from moving laterally through the system once they gain access.
Security audits and assessments
Regularly conducting security audits and vulnerability assessments helps identify weaknesses in systems, processes, and controls. These audits can highlight compliance gaps, reveal potential threats, and offer opportunities for improvement.
How Marsh McLennan Agency can help
By understanding and addressing every potential risk, business leaders can become more resilient to present and future uncertainties. Our team provides guidance on proactive cyber risk management solutions that help you navigate potential cybersecurity threats, preparing your organization for whatever may happen.
Learn more about the business insurance trends and main concerns companies should be aware of by reading our Business Insurance Trends Report. Download the report today to better protect your business for tomorrow.
