Cyber Threats: The Catalyst for Broader Risks, Says Hiscox

• •Cyber threats are the most interconnected risk for large businesses.
• •55% of risk managers link cyber threats with AI-enabled fraud.
• •94% believe organizations underestimate the cascading impacts of risks.

According to Hiscox's Risk in Motion report, cyber threats are identified as the most interconnected risk for large businesses, with 55% of surveyed risk managers linking cyber threats to AI-enabled fraud. The report indicates that cyber attacks can lead to significant economic damage, workforce disruption, and a decline in institutional trust. Over half of the risk managers (51%) reported facing multiple interconnected risks simultaneously, with 27% stating that one risk event often triggers another. The study also highlights that 94% of respondents believe organizations underestimate the cascading impacts of a single event. Hiscox emphasizes the need for better coordination among teams to manage these interconnected threats effectively. Investment in risk management is expected to rise, driven by economic uncertainty and emerging technology risks, yet only 48% of risk managers feel their models adequately capture interconnected risks.