05 Jun Generational Switch in Enterprise Value Base Leaves Cyber Risk Playing Catch-Up
A global survey into Cyber Risk by Marsh & McLennan gives a startling insight into how the world of business has evolved in just 4 decades – and leads to the conclusion that the Cyber Risk market has a great deal of catching-up to do.
The report, which can be downloaded here, opens with the astonishing statistic that intangible assets, which 40 years ago accounted for just 17% of total corporate value across the S&P 500, now make up 87% of the valuation asset base of corporate America (it is to be expected that a similar shift would be seen in other major developed economies such as the UK).
Despite this paradigm shift in the asset base of major companies, spending on physical security still continues to outstrip that on cybersecurity – according to Stratistics MRC, the Global Physical Security market was estimated at $68 billion in 2016, while the same consultancy estimates the Global Cybersecurity market to be $32 billion in 2017.
The proportion of spending to protect against physical risk vs cyber risk will inevitably shift in the coming years to better reflect the asset value change shown above – strong growth for cybersecurity would appear to be certain, as is strong growth in Cyber Risk Insurance.
Trustify’s new Cyber Risk Manager service, launched today for SMEs and Enterprises, offers organisations of every type and every size the best way to protect that Intangible Asset base and Secure Everything – Always.TM