With a number of crucial cyber incidents impacting on UK businesses just this year, improving cyber resilience against cyber-attacks within companies has never been so necessary.
Well known UK business retailers such as M&S & Co-op, manufacturers JLR and crucial airport system providers have all fallen victim to cyber-attacks during 2025, resulting in a huge strain on companies to resolve.
The cost impacts of a cyber crime
So, what are the key factors that can impact a business when a cybercrime occurs?
- Ransome Money – Some cybercrimes can involve hefty amounts of money to be paid up front as ransomware which the hackers will demand to release IT systems from their cyber problem. Often businesses have no other choice but to pay immediately to get infrastructure up and running as quickly as possible again, with a hope that they can recoup costs at a later date.
- Loss of income – Whilst IT systems are out of action, businesses can’t process payments and orders, which means that they lose on sales and service production until the cyber issue is resolved. This impacts yearly profit margins and ROI for investors.
- Time to resolve – When a cyber breach occurs, the time that it takes for teams to fix is immense. Notifying the NCSC https://www.ncsc.gov.uk/, filling out legal forms to report the incident and using backup methods to record processes which are often slower and possibly paper based all takes time. It also means that whilst more time is spent on processing through alternative means, that less time can be spent on prioritising customers and offering good quality service.
- Software and hardware equipment upgrades – Software and hardware services can often be the culprit as to why a cyber-attack occurs in the first place. They should be invested in regularly, to ensure that IT systems are running the very latest in cyber defence. If investment has not been prioritised, then getting IT up to scratch on top of all the other cost impacts of a cyber breach can seem like an added hefty cost to a business.
- Brand Tarnish – A positive brand means everything to a business. It represents excellent quality and good customer service. If any of these elements are impacted, it can reduce brand value which can have long term effects on a company’s reputation, and some businesses may never recover.
- Customer Loyalty – All of the above impacts on customer choice. This means that customers are likely to go elsewhere to find their goods through alternative options when they can’t buy through their regular supplier. Whilst it is hoped that most customers will return to buy from the business once everything is fixed, there is often a loss where some customers might not return for some time, and some may never return. Furthermore, the longer a cyber breach takes to fix, the further impact on time, this has on customer loyalty.
Building resilience against cyber crime
No UK business wants to endure any of the cost and time implications as explained above. Through cyber security insurance supplied by JRW Risk Solutions, businesses have peace of mind that they have put the correct cyber resilience in place in the first instance to combat against cybercrime. Not only that, but they are assured that they are protected should a cyber breach occur. To find out more about how we can support your business, please get in touch.