Large companies are often prime targets for cyberattacks. This has created a continued need to dedicate significant resources to help protect the organization, especially as hackers grow in sophistication.

A recent survey from Nationwide of risk managers—those charged with identifying, evaluating, and selecting the best techniques to mitigate risk—revealed that cybersecurity takes up a substantial portion of their budgets. 68% expect these budgets will continue to grow in the coming years.

“Nationwide’s previous studies have revealed that consumers as well as small to mid-sized businesses have begun to take cyber threats very seriously,” said Tim Nunziata, Vice President of Cyber Risk for Nationwide Excess and Surplus/Specialty. “Large businesses have always been a target and that’s why many already have teams in place to protect them. As the threats become more frequent and sophisticated, risk managers know they must remain vigilant.”

Large enterprises remain concerned about cyberattacks…
Respondents believe there is a greater risk of their company experiencing a cyberattack since the beginning of the war in Ukraine (57%). 90% say they are concerned about their company falling victim to a cyberattack. But they are preparing, 91% have an incident response plan in the event of a cyberattack.

…because they know they are still on cybercriminals’ radar
68% of those who took part in Nationwide’s survey report their company has been the victim of an attack in the last three years, including almost 1 in 4 (24%) in the past year. 88% say that they’ve experienced an attack at some point in their company’s history.

Those attacks are costly…
Of those who experienced an attack nearly 7 in 10 (68%) report their business operations were impacted and three-quarters (75%) reported a significant or moderate financial impact.

…and recovery can take a while!
71% said recovery from the attack took longer than one month, and more than a third (35%) reported the process taking longer than four months.

Risk managers are on the lookout for common attacks…
They view data breaches (24%), ransomware (13%) and business interruption (11%) as the top cybersecurity threats.

…but there’s a new threat to keep an eye on
The cyberattack of the future? Deepfakes. Despite an increase in companies falling prey to deepfake attacks and even warnings from the FBI, it’s not high on the list of concerns for risk managers. Only 6% of those surveyed say social engineering, impersonation, or other tactics to manipulate employees is their biggest concern.

Companies are turning to insurance experts for help
83% report they are renewing their current cyber policy. 94% of those who did renew that policy said their broker or agent played an important role during the renewal process. Half (53%) of risk managers report their coverage has changed in the past two years, with most reporting that they’ve increased their coverage.

“Agents and brokers can really help clarify the threat landscape, including what is out there and what cyber trends they are seeing,” said Nunziata. “Where they really provide value is making sure a business has the coverage they to protect and mitigate issues.”

For more information on how to protect your company, click here.

For more information on the finding of this survey, view the complete survey results.

Methodology
Nationwide partnered with Edelman Data & Intelligence to conduct a 20-minute national online survey of 500 corporate risk managers employed by mid-sized firms, defined as reporting annual revenue of $250 million to $1.5 billion. The survey was fielded from August 8 - 25, 2022. As a member in good standing with The Insights Association as well as ESOMAR Edelman Data & Intelligence conducts all research in accordance with local, national and international laws as well as in line with all Market Research Standards and Guidelines.