Report: Cloud service failures could cost retailers more than $3 billion
As more companies move their operations to the cloud, they are being followed by cyber-criminals looking for a way to penetrate systems.
If cyber-criminals are able to hack into one of the top cloud providers, the retail wholesale trade sectors would see economic losses of $3.6 billion, according to “Cloud Down — The Impacts on the U.S. Economy,” a report from specialist insurance and reinsurance market, Lloyd’s.
According to the report, an extreme cyber incident that takes a top cloud provider offline in the U.S. for three to six days would result in economic losses of $15 billion, and up to $3 billion in insured losses.
In addition to retailers, their business partners also feel the fallout — and financial burden — of these incidents. Manufacturing companies would see direct economic losses of $8.6 billion; while transportation and warehousing companies would see losses of $439 million, according to the report.
“Clouds can fail or be brought down in many ways – ranging from malicious attacks by terrorists to lighting strikes, flooding or simply a mundane error by an employee,” said Trevor Maynard, head of innovation at Lloyd’s.
“Whatever the cause, it is important for businesses to quantify the risks they are exposed to,” he added. “Failure to do so will not only lead to financial losses, but also potentially loss of customers and reputation.”
If cyber-criminals are able to hack into one of the top cloud providers, the retail wholesale trade sectors would see economic losses of $3.6 billion, according to “Cloud Down — The Impacts on the U.S. Economy,” a report from specialist insurance and reinsurance market, Lloyd’s.
According to the report, an extreme cyber incident that takes a top cloud provider offline in the U.S. for three to six days would result in economic losses of $15 billion, and up to $3 billion in insured losses.
In addition to retailers, their business partners also feel the fallout — and financial burden — of these incidents. Manufacturing companies would see direct economic losses of $8.6 billion; while transportation and warehousing companies would see losses of $439 million, according to the report.
“Clouds can fail or be brought down in many ways – ranging from malicious attacks by terrorists to lighting strikes, flooding or simply a mundane error by an employee,” said Trevor Maynard, head of innovation at Lloyd’s.
“Whatever the cause, it is important for businesses to quantify the risks they are exposed to,” he added. “Failure to do so will not only lead to financial losses, but also potentially loss of customers and reputation.”