Urgent Cyber Threats: Are Businesses Taking Enough Action?

The 2024 Travelers Canada Risk Index has revealed a growing concern among business leaders: cyber threats have once again been ranked as the top issue facing Canadian businesses. With nearly two-thirds (65 percent) of respondents worried about cyber risks, this concern has even surpassed economic uncertainty, which has dominated headlines for months. As technology evolves, so do the threats that businesses face, putting more pressure on companies to safeguard their systems and sensitive information.

This heightened concern is understandable. According to the Risk Index, businesses are grappling with the possibility of unauthorized access to financial systems, breaches of client data, and system glitches that can cause major operational disruptions. Alarmingly, nearly three in ten (29 percent) businesses surveyed admitted to experiencing a cyber incident, yet some incidents go unreported. Approximately 19 percent of businesses chose not to report breaches, often due to fears of damaging their reputation or losing intellectual property.

Despite the growing recognition of cyber risks, there is a troubling trend: the number of businesses purchasing cyber insurance has decreased. While 66 percent of respondents reported having cyber insurance, this is down from 72 percent the previous year. Many cite the cost of coverage as a deterrent, and some feel their current protection is adequate. Yet, as the landscape of cyber threats continues to evolve, relying solely on basic measures may no longer suffice.

For business leaders, now is the time to take proactive steps. Michael Trendler, Managing Director of Specialty Insurance at Travelers Canada, emphasized the importance of educating employees and investing in the right preventive measures. Cyber insurance plays a crucial role in protecting against significant losses, but that’s only one piece of the puzzle.

Directpath Global Technologies (DGT) understands these concerns all too well. As a Managed Security Service Provider (MSSP), we offer solutions like Mobile Threat Defense (MTD), Extended Detection and Response (XDR), and Vulnerability Risk Management as a Service (VRMaaS). We also provide advanced services such as SOC2 compliance, Web Application Firewall (WAF), and virtual Chief Information Security Officer (vCISO) support. Our AI-driven solutions are designed to help businesses protect themselves not only from cyber threats but also to enhance overall operational efficiency.

For businesses that haven’t yet experienced a cyber incident, the Risk Index is a stark reminder that it’s not a matter of if, but when. With 84 percent of respondents agreeing that having proper cyber controls in place is critical to their survival, it’s clear that prioritizing cybersecurity is no longer optional. The threat landscape is constantly changing, and businesses must stay one step ahead.

In the face of these growing risks, companies that invest in robust cybersecurity measures and work with partners like DGT will be better positioned to mitigate threats, protect their data, and maintain the trust of their clients and customers.

Source: Travelers Canada Risk Index, 2024