UK manufacturers call for help in battle against growing cyber risk

A report by manufacturers’ organisation EEF and AIG warns that the UK manufacturing sector is least prepared for cyber risk and urges government to step in and help out. The statements follow a new survey that shows half of UK manufacturers have experienced a cybersecurity incident and one quarter suffered either financial loss or disruption as a result. The manufacturing industry is the third most targeted by cybercriminals, behind government systems and finance, according to the report. However, it warns that the sector is struggling to get on top of the problem and is the least protected against cyberattack. The survey, conducted by the Royal United Services Institute (RUSI) on behalf of EEF and AIG, found that 41% of UK manufacturers do not have access to sufficient information to assess cyber risk, while 45% said they do not have the right tools to carry out this task. The survey found a lack of awareness and understanding of cyber risk at board level at many manufacturers, which in turn made it difficult to secure necessary budgets for cybersecurity risk management programmes. Cybersecurity is not a board-level issue for 40% of manufacturers surveyed, against 55% that said cybersecurity is actively managed at board level. Some 12% of manufacturers said they had no measures in place to mitigate against cyber breach, while two thirds of manufacturers do not have insurance cover against cyberattack. Romaney O’Malley, head of UK regions and head of industrials at AIG Europe, said cyber risk is still not considered a principal risk on the risk register of many manufacturers. Adding: “There is evidentially significant need for greater awareness and understanding of the importance of cyber risk management, not only to protect existing businesses, but to create more secure environments to grow and capitalise on the potential that digital technology advances bring to manufacturers.” Stephen Phipson, CEO of EEF, said government should do more to help manufacturers with cyber risk, and tailor cybersecurity guidance for the sector. “We know businesses cannot afford to ignore this issue any longer and while we welcome government’s progress in improving cybersecurity resilience, to date through the work of the NCA and NCSC, there needs to be an increasing focus given to the specific needs of manufacturing, which hitherto has been lacking.” Mr Phipson said the threat posed by cyber to manufacturers is a “critical risk to government and industry”. Failure to mitigate the risk would cost the UK economy billions of pounds and put thousands of jobs at risk, he added. Cybersecurity processes are coming under increasing scrutiny, in particular those linked to business relationships as firms begin to test supply chains. The survey found that 59% of manufacturers have been asked by customers to prove their cybersecurity processes are robust, but only 37% could do this if asked today. Some 58% of respondents have asked the same of a business within their supply chain. “The need to have demonstrable cybersecurity safeguards in place is becoming ever-more necessary to operate in the business environment,” the report says. The survey found that while 91% of the businesses surveyed are investing in digital technology for the future of their business, 35% said cyber vulnerability was holding them back and making them nervous of digitalisation. AIG and EEF said manufacturers with dated and poorly-protected office systems are the easiest target for cybercriminals. Mr Phipson said: “More and more companies are at risk of attack and manufacturers urgently need to take steps to protect themselves against this burgeoning threat.” Half of manufacturers surveyed are reviewing their cybersecurity strategies to ensure customer and employee data is protected ahead of the EU’s General Data Protection Regulation (GDPR). But 29% said they are not undertaking any such review and 16% of manufacturers surveyed had not heard of the GDPR. The survey was conducted in February 2018. It is based on a sample size of 161 responses from individual UK-based manufacturing businesses, with 98 respondents being SMEs.

UK manufacturers call for help in battle against growing cyber risk

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