Digitalisation is revolutionising how companies operate, and driving business leaders to think differently. The pace of technological change is increasing, and dramatically transforming the global business environment. At the same time, while traditional risks may be reduced, the potential cyber and technology exposures that businesses face continue to expand, presenting businesses with the possibility of substantial economic losses.
Marsh’s latest research was presented in The Changing Face of Cyber Claims report, which leverages insights gathered from Marsh’s claims data and from the data, experience, and expertise from Wavestone and CMS, to look at practical ways to manage and mitigate cyber risk and claims.
In these industry deep-dives, we gather the key findings from a number of key industries, each one impacted by cyber risk in its own, unique way.
Manufacturing companies have slowly but steadily been automating their production processes to achieve efficiencies and improve quality. For a few years, these production processes are digitalised as well, aligning production equipment with applications such as the enterprise resource management and logistics systems.
Now, we’re at the forefront of a new industrial revolution: Industry 4.0. Large-scale machine-to-machine communication (M2M) and the industrial internet of things (IIoT) are integrated for increased automation, improved communication and self-monitoring, and production of smart machines that can analyse and diagnose issues without the need for human intervention.
Those manufacturers with smart factories will have a competitive advantage, with increased operational efficiency, reduced environmental impact and improved future planning.
Shifting cyber risks: ransomware, data theft and industrial espionage
Manufacturers are continuously innovating their production processes with digital technologies. While the business case is typically positive, new cyber risks do present themselves with the introduction of this technology. The risk of business interruption from a cyber-event at one or multiple factories, specifically from threats like ransomware, is ever at the forefront of this development, leading to defective products, production downtime, physical damage, and potentially even injuries and deaths.
Manufacturers are working hard to ensure that their supply chains are digitalised as well. This has improved the management and flow of materials and goods, to maximise efficiency within the organisation.
Unfortunately, it has also presented new opportunities for cyber-criminals to target production lines and damage not only the technology, but the physical infrastructure too.
Finally, the theft of sensitive commercial data is a specific concern for manufacturers. Manufacturers are entrusted with the blueprints and intricate details of intellectual property of themselves or third parties. With high levels of competition within the manufacturing sector, industrial espionage for competitive advantage is therefore a common threat. Hackers too, are aware that they can demand high ransom payments in exchange for unencrypted data, as well as use personal information for fraud or blackmail.
Head of Cyber Risk Consulting Continental Europe
Netherlands
JEAN BAYON DE LA TOUR
Head of Cyber -
Continental Europe - FINPRO
+49 152 0162 6445
jean.bayondelatour@marsh.com
GREGORY VAN DEN TOP
Head of Cyber Risk Consulting
Continental Europe
+31 (0)6 125 68 971
gregory.vandentop@marsh.com
