Singapore:76% of executives believe existing cyber defences can avert cyber attacks

Beazley's recent survey of 3,500 global business leaders has revealed that despite the growing risk landscape, only 24% of executives based in Singapore ranked cyber as their top risk this year.

As cyber criminals continue to devise and hone their attack tactics firms need to be on the front foot with their cyber resilience, so it is concerning that 76% of the Singapore-based executives surveyed believe that their existing cyber defences are currently sufficient to deal with a cyber attack, says Beazley in its report, “Spotlight On Cyber & Technology Risk 2024—Resilience in a game-changing environment”.

The survey findings also show that perceived preparedness against cyber risk is rising. This year, 83% of Singapore’s business leaders feel resilient against cyber risk, up from 78% in 2023. At the same time, 24% of Singaporean-based businesses are planning to invest in cyber security measures this year. In addition, 20% intend on exploring insurance options that include risk and crisis management services this year, which are essential to help businesses defend and recover from a cyber incident.

Summary of business leaders’ views on cyber risk and development

AI—Friend and Foe

The advent of artificial intelligence (AI) has presented organisations with immense opportunities to streamline their operations and benefit from efficiency gains. The adoption of AI has been widespread, and 26% of Singaporean-based businesses are planning to invest in new technologies, such as AI, to improve their resilience. The technology is also set to have a seismic societal impact, with 80% of Singapore’s business leaders agreeing AI will replace jobs in their company.

While AI presents opportunities, the speed of innovation in this space is proving to be a key concern for businesses. 29% of Singapore-based business leaders cited tech obsolescence risk as their biggest threat this year, with around a sixth (16%) feeling unprepared to manage tech obsolescence risk this year.

In addition, AI is helping cyber criminals to refine existing techniques, such as phishing, while also developing new techniques, such as deepfake attacks. As hackers become more ruthless, sophisticated, and harder to identify, businesses must have effective cyber defences in place to counter the range of cyber and tech risks that are evolving at speed.

Mr Ng Teck Siong, underwriter, Cyber Risks, APAC, Beazley, said, “As cyber criminals hone their techniques, businesses across APAC find themselves increasingly exposed. As our data uncovers that business leaders in the region feel more prepared to counter cyber risk than last year, many may be dulled to the danger. There are a host of evolving threats that businesses must be aware of and have robust risk mitigation plans in place to counter. For example, while AI presents opportunities for cyber criminals, it also promises to bring about a seismic societal shift. As 80% of APAC business leaders agreed that AI will replace jobs in their company, its potential should not be underestimated.”

Methodology

This year’s survey was undertaken between 5-15 January 2024 with 3,500 respondents based in the UK, US, Canada, Singapore, France, Germany and Spain. The respondents were in nine broad industry sectors with international operations, with a minimum of 50 respondents per country per industry sector. In 2021, the survey was undertaken with 1,000 respondents based in the UK and US. In 2022 and 2023, the sample base was expanded to 2,000 respondents based in the UK, US, Canada, and Singapore. Survey participants were asked about their views on insurers and insurance.

Beazley is the parent company of specialist insurance businesses with operations in Europe, North America, Latin America, and Asia. Beazley manages six Lloyd’s syndicates and, in 2023, underwrote gross premiums worldwide of $5,601.4m. All Lloyd’s syndicates are rated ‘A’ by AM Best.   

To view the “Spotlight on Cyber & Technology Risk” report, click here.