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Corporate Risk Management: cyber crime-related losses total over USD$ 10 billion in 2022

Companies are vulnerable to a number of challenges ranging from financial loss to reputation damage. Cyber-crime is among the leading concerns facing organizations today.

The Internet Crime Complaint Centre (IC3), the FBI agency that investigates cyber-attacks and unauthorized digital system penetration, has according to its latest report fielded over 800,000 cyber-crime-related complaints in 2022, with losses totalling in excess of 10 billion dollars. 
In this light, companies absolutely must map out the main risks they are exposed to, if they wish to prepare adequately. To that end, they need to list priorities and use cost-benefit analysis to determine the implementation of security steps and measures that will help them mitigate the risks they have identified. 
According to the Centre for Economics and Business Research (CEBR), the world should face a recession in 2023: higher costs on loans to combat inflation are causing several economies to shrink. The International Monetary Fund (IMF) claims that, although global inflation numbers are dropping, they’re not dropping fast enough to restore price stability. 
A survey from the  ECIIA | European Confederation of Institutes of Internal Auditing report published in September last year, the five key risks for companies in 2023 would be: cybersecurity and data security (82%); human capital, diversity and talent management (50%); macroeconomic and geopolitical uncertainty (46%); changes to laws and statutes (44%); and digital disruption and new technologies (38%). 
Facing this scenario, MDS uses a number of logics, mathematical and statistics tools to identify, measure and duly process the risk that each company faces. Insurance plays a significant role in risk management for a company as part of a comprehensive, holistic approach. 
The latest trends, technologies and practices in risk management as well as the key challenges companies face at present were discussed during the largest, most far-reaching risk management event in the world — RIMS (Risk and Insurance Management Society, Inc.), between April 30 and May 3, in Atlanta, US. 
Cyber-attacks figure among the top 10 global risks in the short- and mid-term, claims the World Economic Forum annual report, and they head the ranked concerns of the Allianz Risk Barometer 2023. Risk management is indispensable. Insurance is a meaningful component in the management of possible threats, as it works to prevent cyber-crimes, which have been growing in intensity and sophistication. 
A CheckPoint Software report points out that Brazil saw a record 37% spike in the number of cyber-attacks during Q3 2022, lifting the veil on a matter of insecurity both for companies and governments. A survey by Proofpoint states that 78% of Brazilian companies underwent at least one successful phishing event in 2022 and 23% suffered financial loss as a result. 
An effective and comprehensive risk management programme must include a number of coordinated actions to neutralise, prevent and contain situations that may give rise to loss and expenses for businesses. The threat mitigation stage includes quantitative and qualitative analysis to determine which risks must be prioritized and, finally, completed with the definition of a response or solution to resolve or mitigate the issue.   



Thiago Tristão

Thiago Tristão

VP Corporate Risks - MDS Brasil

Thiago Tristão has a degree in Business from Estácio de Sá University and a post-grad certificate in Strategic People Management from the Getúlio Vargas Foundation. With over 25 years of experience under his belt, he specializes in Corporate Risk and Reinsurance. Tristão has worked in a number of leading multinational insurance groups including RSA, Mapfre, Liberty, Itaú Unibanco, Porto Seguro, and Allianz. He is experienced in strategic planning, customer and business partner relations and high-level corporate environment generation. Currently he serves as VP of Corporate Risk at MDS Brazil and as Brazil CEO for MDS Reinsurance Solutions.