Australian businesses should review their cyber defences to counter the growing threat of potentially costly data breaches, according to Aon’s latest Cyber Insights Report.

Less than a third of the 300-plus companies that completed the Aon Cyber Diagnostic Tool questionnaire have an incident-response plan for cyber events.

About a quarter say their IT systems have been compromised in the past year.

“No industry sector can expect to remain immune from a cyber attack,” Aon Risk Solutions Cyber Risk Practice Leader Australia Fergus Brooks said.

“The sprawling digital ecosystems of business operations, suppliers and customers mean any organisation is vulnerable to potentially catastrophic electronic data theft or sabotage.

“Savvy organisations understand that besides developing robust systems and protection strategies, investing in encryption and firewalls, they need to be proactive in preparing their response to any future breach.”

Aon has noted a 50% increase in demand for cyber insurance in Australia in the first six months of this year. The prevalence of mobile devices and growing use of cloud computing have extended the perimeters that require protection.

“While some organisations have deployed mobile device management technologies that deliver a degree of control over what employees can do with a computer used for work, and what happens if it is lost or stolen, there
are still chinks in the armour,” the report says.

“Cyber risk poses a growing threat to these important organisational assets, and every organisation should consider the potential financial impact of cyber breaches.”