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14 Examples of Cybersecurity Risk

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Cybersecurity risk is the potential for losses due to cyber-attacks, data breaches, unauthorized access and other cybersecurity incidents. This originates with vulnerabilities and threats at the technical level but has broad organizational impact such that cybersecurity is a top level risk that demands the attention of corporate governance. The following are common cybersecurity risks.

Data Breaches

Leaks of private and confidential information.

Business Disruption

Business outages due to cyber attacks.

Financial Loss

Lost revenue and costs for investigation, remediation and liability.

Reputational Damage

Damaged reputation and brand image.

Stakeholder Relationships

Loss of stakeholder trust including damaged relationships with employees, investors, customers, communities and partners.

Compliance Risk

Costs for non-compliance with data protection laws and regulations.

Intellectual Property

Theft of intellectual property and loss of competitive advantages.

Communication Costs

The costs of notifying people and organizations impacted by a cybersecurity incident.

Legal Costs

Legal fees and legal liability.

Insurance Costs

Increased insurance premiums.

Third-Party Risk

Disruptions due to cybersecurity incidents that originate with a partner. For example, supply chain disruptions due to a partner who has been hit with a cyber attack.

Strategic Risk

Disruptions to strategic planning and execution such as mergers & acquisitions, business expansion or product launches.

Business Opportunities

The loss of business opportunities such as a financing deal that falls through due to a cybersecurity incident.

Cybersecurity Investments

The need for increased spending on technology, infrastructure, consulting and training to improve cybersecurity.
Next: Organizational Risk
More about risk:
Customer Risk
Cybersecurity Risk
Existential Risk
Force Majeure
Knowledge Risk
Negative Risk
Platform Risk
Risk Appetite
Risk Avoidance
Risk Mitigation
Risk Triggers
Risk vs Uncertainty
Seasonal Risk
Service Risk
Speculative Risk
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