Gregory Van Den Top
Head of Cyber Risk Consulting Continental Europe
-
Netherlands
Digitalisation is revolutionising how companies operate, and driving business leaders to think differently. The pace of technological change is increasing, and dramatically transforming the global business environment. At the same time, while traditional risks may be reduced, the potential cyber and technology exposures that businesses face continue to expand, presenting businesses with the possibility of substantial economic losses.
Marsh’s latest research was presented in The Changing Face of Cyber Claims report, which leverages insights gathered from Marsh’s claims data and from the data, experience, and expertise from Wavestone and CMS, to look at practical ways to manage and mitigate cyber risk and claims.
In these industry deep-dives, we gather the key findings from a number of key industries, each one impacted by cyber risk in its own, unique way.
Changing consumer mobility habits force automotive manufacturers to rethink their business models. Multi-modal transport and ride-sharing enabled by big data and analytics power resource-efficient, flexible and on-demand multimodal mobility solutions. Meanwhile, ownership of a car is less important to consumers than it used to be.
New entrants are shaking up the automotive industry with electrification and digitalisation of vehicles, driven by consumers’ and governments’ requirement to go ‘emission free’. Electrification also allows for further digitalisation of automobiles,allowing for an advanced experience such as streaming content, digital assistants and software updating capabilities.
On the production side, automation and robotics have been a common sight in automotive factories. The trend to smart factories has been a logical step. Effective and efficient production is key in the automotive industry. While the large automotive manufacturers still have significant market share, new market entrants and changing consumer behaviours are changing the market significantly. Efficiencies will drive further steps in integrated supply chains and new technological advancements such as additive manufacturing, 3D printing and Internet of Things (IoT) are creating value for the pioneers.
The reliance on an integrated supply chain allows for just-in-time production but also requires a large and continuous exchange of data. Inventory levels, product and quality data and logistics drive the supply chain. Any disruption or unauthorised change in this data can significantly disrupt production facilities.
Meanwhile, factories are to a large extent reliant on robotics and digital production resources. Many of these systems were not designed with cybersecurity in mind and are therefore vulnerable to malware and hacks like many other computer systems.
The risk of ransomware infecting production systems, requiring a complete cleanse of factory systems and interrupting production can be quite costly for automotive companies.
Meanwhile, there is an ongoing debate on ownership of data produced by cars and liability in case of incidents due to e.g. programming errors in self-driving cars. While it is still too early to say how these risks will evolve exactly, automotive suppliers will do well to monitor these new cyber risks as they can significantly change the total cost of risk.
Head of Cyber Risk Consulting Continental Europe
Netherlands
JEAN BAYON DE LA TOUR
Head of Cyber -
Continental Europe - FINPRO
+49 152 0162 6445
jean.bayondelatour@marsh.com
GREGORY VAN DEN TOP
Head of Cyber Risk Consulting
Continental Europe
+31 (0)6 125 68 971
gregory.vandentop@marsh.com