Cyber attack is the top threat perceived by businesses, according to the fifth annual horizon scan report published by the Business Continuity Institute (“BCI”), in association with BSI. Similarly, the threat of a data breach rises to second in the list, up one place from 2015.
The annual BCI horizon scan assessed the business preparedness of 568 organizations worldwide and found that more than three quarters (85 percent) of business continuity managers fear the possibility of a cyber attack, with 80 percent worried about the possibility of a data breach.
Concerns over supply chain disruption remained in the top 10, but fell two places from fifth last year to seventh this year. Almost half of those polled (47 percent) identified increasing supply chain complexity as a trend, leaving their organization vulnerable to disruption from conflict or natural disasters.
Concerns over the availability of talent and key skills entered the top 10 for the first time this year, with 13 percent indicating they are “extremely concerned” and 34 percent “concerned” about the threat.
This year's global top 10 threats to business continuity are:
1. Cyber attack – static
2. Data breach – up 1
3. Unplanned IT & telecom outages – down 1
4. Act of terrorism – up 5
5. Security Incident – up 1
6. Interruption to utility supply – down 2
7. Supply chain disruption – down 2
8. Adverse weather – down 1
9. Availability of key skills – new entry
10. Health and Safety incident – new entry
David James-Brown, chairman of the Business Continuity Institute, commented, “The need perceived by organizations to identify and build resilience to this range of threats reveals the importance of this survey for business continuity professionals.” He added that it is, “crucial for practitioners to advise organizations on what to prepare for and adjust their recovery plans accordingly.
“The industry landscape is rapidly changing, and so should our discipline in order to keep up with both traditional and modern challenges. At the top of the list this year we continue to see threats such as cyber attack, data breach, and unplanned IT outages. More traditional threats such as terrorism continue to be 'front-of-mind' for organizations. Given the rise of new challenges and the fact that old ones remain, horizon scanning techniques are even more valuable in assisting organizations to be prepared to the best of their potential.”
Howard Kerr, the chief executive at BSI, commented, “2015 saw a number of high profile businesses across the world hit by cyber attacks, so it's reassuring to see that so many are aware of the threat it poses. Our research finds it to be the top concern in six out of the eight regions surveyed.
“However, we remain concerned to see that businesses are still not fully utilizing the information available to them to identify and remedy weaknesses in their organizational resilience.
“It is difficult to conceive that either investors or employees will be reassured that the leaders of the organizations they trust are making strategic decisions without an effective evaluation of risk.
“Ultimately, organizations must recognize that, while there is risk, and plenty of it, there is also opportunity. Taking advantage of this means that leaders can steer their businesses to succeed by not just surviving, but thriving.”
The report also measures sentiment towards specific business trends and uncertainties. The use of the internet for malicious attacks remains on top this year, with 83 percent indicating their concern. Increasing supply chain complexity also features in the top 10 and on the radar of 47 percent of respondents.
Despite growing fears over the resilience of their firms, the report records another fall in the use of long-term trend analysis to assess and understand threats, down three percent to 70 percent this year.
Of those carrying out trend analysis, a worrying third (33 percent) are not using the results to inform their business continuity management programs.
Globally, business preparedness shows variations with nine out of 10 (94 percent) organizations in Canada utilizing trend analysis, while just three in 10 firms (29 percent) in the Caribbean and Latin America do so. Small businesses, evaluated for the second time in this year's report, continue to lag behind with only 58 percent compared to 74 percent of larger businesses.
Learn more: www.bsigroup.com.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].