Cyber threats is the leading concern among business leaders for the second consecutive year, according to 2024 Travelers Canada Risk Index.

The survey by Travelers Companies, Inc., first published in 2023, asks business decision-makers from small- and medium-sized Canadian companies across various industries about the issues that worry them most.

Nearly two-thirds (65 percent) of respondents said they worry somewhat or a great deal about cyber risks, an increase from 61 percent last year.

This year, the Index found that cyber concerns were followed by broad economic uncertainty (62 percent), the impact of the global economy on their companies (58 percent), financial issues (57 percent) and supply chain risks (56 percent).

“As technology continues to advance, cyber threats continue to grow,” said Michael Trendler, managing director of Specialty Insurance at Travelers Canada. “This year’s survey highlights the importance of preventive measures within organizations, including investing in the right cyber insurance coverage and educating employees on how best to protect information.”

The index found that two-thirds (66 percent) reported their companies have purchased cyber insurance, a decrease from 72 percent a year earlier.

Among those who said that their companies did not purchase a cyber policy, 32 percent indicated it was due to the cost of coverage, and 29 percent said it was because their companies already have adequate protection in place.

Nearly three in 10 respondents (29 percent) said their companies or organizations have experienced a cybersecurity event. Medium-sized businesses (36 percent) were more likely to have suffered a cyber incident than small businesses (20 percent).

Nearly one in five (19 percent) admitted their companies experienced a cyber event but did not report it, due largely to fear of damaging their brand or compromising intellectual property.

The most common type of incident was a security breach (36 percent), where someone gained unauthorized access into a company’s computer system.

Eighty-four percent of respondents agreed having proper cyber controls in place is critical to their companies’ well-being.

The top cyber-specific concern was an unauthorized user gaining access to company banking accounts or financial control systems – up from sixth just one year ago – with 60 percent of respondents citing it as a worry.

Additional cyber concerns included:

• The potential for compromise, theft or loss of control of customer or client records (59 percent).
• A security breach where an unauthorized user gains access to computer systems (59 percent).
• A system glitch or error causing computers to go down (58 percent).

The Travelers Canada Risk Index survey was commissioned by Travelers and conducted by Hart Research via a national online survey of 1,000 Canadian business decision-makers between August 7-19, 2024.