Financial impact from severe OT events could top $300B
The global financial impact from catastrophic cyber events that disrupt operational technology could near $330 billion on an annual basis, according to a report that industrial cybersecurity firm Dragos and professional-services firm Marsh McLennan released on Tuesday.
The cost of business interruptions in such a scenario would exceed $172 billion, according to the report. Those estimated losses are based on a so-called 1-in-250-year tail event and factor in global supply-chain impacts and other related events.
Dragos researchers say the indirect losses, including the impact from disrupting normal operations, are the concerns that many companies fail to account for.
'We see OT companies investing the majority of their cybersecurity budget on IT networks,' said Mark Stacey, VP, risk and resilience solutions at Dragos, adding that companies often assume OT functioning as normal when production is ongoing.
'The potential impact of business interruption (whether direct through adversary action or indirect to an abundance of caution) is often underestimated,' he says.
In comparison, the average annual global risk, including business interruption claims, is $12.7 billion, the average global aggregated risk over the next 12 months is $31 billion.
The financial analysis is based on 10 years of breach and insurance-claims data from Marsh McLennan's Cyber Risk Intelligence Center.
The report provides insights into the risks facing operational technology, which has experienced an increase in attacks in recent years. Manufacturing and other critical infrastructure sectors are increasingly dependent on connected technologies, including the need for remote-access tools that are often connected to the internet.
The report highlights how specific defense strategies can reduce overall risk. The three OT security controls most associated with risk reduction were maintaining a comprehensive incident-response plan, using defensible architecture and performing continuous monitoring to preserve visibility into a network
In recent months, companies have reported significant financial losses from cyberattacks that affected their supply chains or their ability to conduct online transactions.
British department store chain Marks & Spencer took a $400 million hit after a social-engineering attack linked to the Scattered Spider cybercrime group. The company on Monday confirmed that it had restored its online ordering service, months after the April cyberattack.
United Natural Foods, the distributor for retailers including Amazon's Whole Foods chain, said last month that a cyberattack also linked to Scattered Spider would cost the company at least $350 million in sales.
Recommended Reading
6 security experts on what cyberthreats they expect in 2023
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
16 minutes ago
- Business Insider
Joby's flying taxi made a 'major step' with its first test flight between two US airports
An air taxi company has completed its first test flight between two US airports as the budding industry moves toward commercial service. Joby Aviation said Friday that its electric aircraft, which can take off and land vertically, flew between two public airports in California. It took about 12 minutes to fly from Marina to Monterey, whose airports are 11½ miles apart. The company called the flight "a major step as part of Joby's commercial market readiness." Flying in controlled airspace, the aircraft spent five minutes in a holding pattern to let an airliner arrive at Monterey, Joby said. In addition to working with air traffic control, the flight showcased some key capabilities of the electric vertical-takeoff and landing vehicle (eVTOL). It has six propellers, which tilt depending on whether it's flying vertically. While Joby said it was the first eVTOL flight between two public airports in the US, the British firm Vertical Aerospace said it operated the world's first flight between two public airports last month, flying 17 miles from a small English airport to an air force base. eVTOL companies are looking to transform commuting, with the first planned commercial services expected to be between airports and downtown cities. Joby said it could fly from downtown New York City to JFK Airport in seven minutes compared to 49 minutes by car. Its eVTOL became the first to fly in the city with an exhibition flight in 2023. Being powered by electricity is not just a sustainability benefit but also means it can fly relatively quietly, unlike helicopters, which are heavily regulated in New York and other cities due to their noise. However, eVTOLs can require additional landing infrastructure when taking off and landing in cities. Vertical takeoff also requires more energy than horizontal flights, which, in combination with battery constraints, can limit passenger capacity. While prices are yet to be announced, industry players have compared the cost of one seat to a premium Uber. Joby has partnered with Delta Air Lines and Virgin Atlantic to help launch air taxi services, while rival firm Archer has received an order worth up to $1.5 billion from United Airlines. Both companies are planning to first carry passengers in the United Arab Emirates. Archer hopes to take off in Abu Dhabi before the end of the year, while Joby plans to launch in Dubai in early 2026. Joby plans to begin flight testing with Federal Aviation Administration pilots early next year as it works to be certified in the US, and would first operate in Los Angeles and New York.
Business of Fashion
2 hours ago
- Business of Fashion
Fast-Fashion Retailer Shein's UK Sales Surged to $2.8 Billion in 2024
Shein's British business made £2.05 billion ($2.77 billion) in sales in 2024, a 32.3 percent increase from the previous year, a filing by the online fast-fashion retailer showed early on Friday. Shein does not report global results publicly, but the filing sheds light on its growth in Britain, its third-biggest market after the United States and Germany, as the company works toward an initial public offering in Hong Kong. Founded in China and headquartered in Singapore, Shein has spent years attempting to list, first in New York and then in London, but faced criticism from US and UK politicians and failed to get approval from China's securities regulator for the offshore IPO at a time of increasing tensions between China and the US. The global retailer's UK business, Shein Distribution UK Ltd, reported a pretax profit of £38.25 million in 2024, up 56.6 percent from £24.4 million in 2023. In the filing, Shein highlighted 2024 milestones, such as a pop-up shop in Liverpool, a Christmas bus tour across 12 UK cities and the opening of two new offices in Kings Cross and Manchester. Known for deeply discounted prices, Shein runs constant promotions and offers coupons or rewards that encourage shoppers to keep buying. Shein has taken market share from retailers like ASOS and H&M as surging inflation dented consumers' spending power, driving them to hunt for bargains. Shein has also broadened its offering beyond fashion — the UK site sells £7.99 ($10.84) dresses and £15 ($20.36) jeans, as well as everything from toys and craft supplies to storage units. Shein's business has benefited from customs duty exemptions on low-value e-commerce packages that allow it to send goods directly from factories in China to shoppers' doorsteps largely tariff-free. But that perk is on its way out, driving Shein's costs — and prices — up, particularly in the US, where imports from China are now subject to steep tariffs. US President Donald Trump's administration has scrapped its 'de minimis' exemption for parcels under $800, and the European Union plans to remove its equivalent duty waiver on e-commerce parcels worth less than €150. Britain is also reviewing its policy on low-value imports after retailers said it was giving online players like Shein and Temu an unfair advantage. By Helen Reid, Nilutpal Timsina and Mrinmay Dey; Editor: Alan Barona Learn more: Shein Is Struggling to Clean Up Its Dirty Image The company's latest sustainability report shows it's still fashion's most polluting player, with planet-warming emissions that far outstrip those of rivals and help make the brand a target for politicians and regulators.
Epoch Times
2 hours ago
- Epoch Times
Ampol to Acquire About 500 Petrol Stations in $1.1 Billion Deal
Ampol will purchase EG Group's Australian operations in a transaction worth AU$1.1 billion, expanding its service station network across the country. The deal will give Ampol control of around 500 fuel and convenience sites currently operated by EG Australia, a subsidiary of the British-owned EG Group. As per Reuters, the acquisition will be funded through AU$800 million in cash, sourced from existing debt, and approximately AU$250 million from the sale of Ampol shares. Ampol Chairman Steven Gregg said the transaction would deliver scale and operational benefits. 'The combined network will have greater scale and significant cost synergies that will support strong returns and earnings growth for our shareholders,' he said. Ampol expects the integration to deliver annual savings of between $65 million and $80 million. The company currently supplies fuel to 80,000 customers nationwide and serves around 3 million people each week through its retail outlets. EG Group's Exit from Australia The sale will mark EG Group's departure from the Australian market, five years after it entered through a $1.25 billion acquisition of Woolworths' fuel business. The British-based operator, which has grown to over 6,000 sites worldwide, has been shedding non-core assets to reduce its debt load. Earlier this week, EG agreed to sell its Italian business for 225 million euro as part of a broader strategy to strengthen its balance sheet. The company's net debt stands at about US$5.3 billion, built up during an aggressive acquisition spree, and pre-tax profits have fallen sharply—from US$1.4 billion to US$10 million last year, according to The Times. The sale of its Australian arm is subject to clearance from the Australian Competition and Consumer Commission.
