Indications from a study of public documentsconducted by Willis Group Holdings suggest that some companies maybe underestimating their cyber risk exposure.

The Willis report, 10K Disclosures – How Technology and TelecomCompanies Describe Their Cyber Liability Exposures, revealed thattechnology and telecommunications companies estimate their cyberexposures at higher levels than others in the Fortune 1000.

"We looked at how tech companies estimate their own cyberexposures, and they're seeing higher frequency and severity ofexposure than others in the Fortune 1000," said Ann Longmore, thehead of D&O, Fiduciary, and EPL Products for Willis FINEX inNorth America and co-author of the study. "Significantly, they aretwice as concerned about outsourced vendor risk."

Overall, the study reveals that tech/telecom companies have ahigh level concern for the potential for outsourced vendor risk, ata rate of more than double other large corporations.

"We find this compelling because these companies are by andlarge the cyber vendors for the rest of the Fortune 1000.They're seeing a big risk involving their own kind," Longmoresaid.

Technology and telecommunications providers are at the centerfor cyber infrastructure. Indirectly, the results from the Willisstudy show that dependence on vendors cam make companiesvulnerable. The problem is, many are not aware of theirvulnerability, which could be come a liability.

Results suggest that there is a potential shortfall by others inthe Fortune 1000 in assessing cyber risk. Other key findingsinclude:

• 44% of tech/telecom companies use technical safeguards
• 20% report inadequate resources to limit cyber losses
• 11% have purchased insurance for cyber exposure

"The issue of cyber vulnerability through vendors has beenthrust into the spotlight following news reports that a recentbreach at a major retailer was through a vendor's access to theretailer's systems. Awareness of outsourced vendor exposure needsto be high on the radar of all tech and telecom firms," said SaraBenolken, Willis' global industry leader for technology, media andtelecommunications.

The Willis Special Report: 10K Disclosures – HowTechnology and Telecom Companies Describe Their Cyber LiabilityExposures examines feedback concerning cyber riskdisclosures made by tech/telecom companies in the Fortune 1000 aspart of Willis' ongoing series reporting on how public companiesdescribe their cyber risk in financial documents.