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“The global interconnectedness of cyber means it is too substantial a risk for one sector to face alone and therefore we must continue to share knowledge, expertise and innovative ideas across government, industry and the insurance market to ensure we build society’s resilience against the potential scale of this risk,” Bruce Carnegie-Brown, Lloyd’s of London chairman, said. Credit: denisismagilov/Adobe StockA cyberattack on a major financial services payment system could result in widespread business disruption and potentially result in $3.5 trillion in global economic losses over a five-year period, according to research from Lloyd’s of London and the Cambridge Centre for Risk Studies.
To come at the sum, the London market and academic institution ran nine hypothetical, yet plausible, systemic risk scenarios across major, severe and extreme levels of severity. The $3.5 trillion figure is the weighted average across all three severities modeled, according to Lloyd’s, which used global GDP as its central measurement when running the scenarios. The range of potential losses following such as cyberattack stretch from $2.6 trillion to a high of $16 trillion in the most extreme scenario.
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Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].
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