Cyber incidents pose key threat for travel, hospitality sectors, shows survey

In the dynamic landscape of risk management, one threat has emerged as the undisputed cause for concern in the hospitality, leisure and tourism sectors: cyber incidents.

According to the latest Allianz Risk Barometer, based on insights from more than 3,000 risk management professionals and business leaders, cyber incidents have surged to the forefront of concerns this year, highlighting the critical need for proactive measures to ensure business continuity and resilience.

With 36 per cent of the respondents expressing concern, cyber incidents have surpassed all other risks to claim the top spot in the sectors.

This shift underscores the growing threat posed by cybercriminals, who are leveraging advanced technologies and tactics to target both IT and physical supply chains.

The recent surge in ransomware attacks has led to a 50 per cent increase in insurance claims activity compared to 2022, further emphasising the urgency of addressing cybersecurity vulnerabilities.

Santho Mohapeloa, cyber insurance expert at Allianz Commercial, sheds light on the evolving nature of cyber threats: “Cyber criminals are leveraging new technologies such as gen AI (generative artificial intelligence) to automate and accelerate attacks, creating more effective malware and phishing schemes.

“The shortage of cybersecurity professionals and the increasing reliance on IT outsourcing among smaller companies further exacerbate the risk landscape.”

Mitigating the impact of cyber incidents

Investment in early detection capabilities, supported by artificial intelligence, is crucial to mitigating the impact of cyber incidents. Without effective detection tools, companies risk facing prolonged downtime, increased costs, and damage to their reputation and bottom line.

While cyber incidents claim the top spot, other risks such as business interruption, changes in legislation and regulation, macroeconomic developments, and natural catastrophes remain significant concerns for the sector.

Business interruption, in particular, has moved down to the number two threat, highlighting the complex web of risks facing businesses in the hospitality, leisure and tourism industry.

Line of defence

To navigate these challenges effectively, the barometer recommends that businesses must prioritise robust business continuity planning, cybersecurity measures, and risk management strategies.

Regular reviews of business continuity plans, robust cyber protection protocols, and leveraging data insights for tailored risk assessments are essential steps in future-proofing operations.

Read: Top 12 tips to keep your business safe from cyber-attacks