If a major firm of cloud computing comes under cyber attack, it can lead to some financial damage to it, and this damage can be enormous – as big as a hurricane. The economists and experts in finance have given out warnings in this regard, and compared the financial damage to Hurricane Sandy and Hurricane Katrina.
Concentration of Risks
The number of enterprises, as well as individuals, who depend on cloud-based service for their Information technology, is on the rise. The show faith in the largest tech companies in the world, so that they can get safe and high quality value services via the internet. However, this concentrates the risk into a small number of places, as well, thus shifting the attention away from the criminal hackers, as well as the malign states.
According to recent reports, if the attacker takes down a notable cloud provider, then the damage can range between $50 billion i.e. £36 billion, and to $120 billion. This catastrophic range can be compared to the events of Hurricane Sandy event or Katrina. The current cost of the cyber attacks is about $1 trillion a year in damage, in comparison with the record of 2017 amount of $300 billion as a result of natural disasters.
Lack of Infrastructure
The result of cyber attacks can be as big, or even bigger, than a massive natural phenomenon, and yet, the infrastructure to prevent it or deal with it is not big enough in scale. For instance, the government organizations and voluntary agencies which concentrate on the reactions to natural disasters, as opposed to the large-scale cyber organizations that are less resourced to a great extent. They have the capability but that is not enough for dealing with a majorly growing risk. The global protocols are yet to arise in the scene of handling cyber risks, which are also rapidly growing as the governments get more and more involved in the cyber attacks.
Threats of Cyber Attacks
What sets natural disasters apart from mere financial disasters in the threat or possibility of death. However, when it comes to cyber attacks, the result can be more than just financial or economic damage. In many cases, lives are at risk because of them. The Wannacry attack, which took place last year, managed to freeze several thousand computers all across the globe, and then they raised a demand for a massive ransom from the users. They succeeded in hitting the scores of the NHS trusts, and forced the cancellation of operations which affected the capability of health service in providing care.
The most recent reports have managed to find cyber risks that are growing at the fastest rate, raising concern and worry among business organizations. There has been a rise from the sixth place on the list of 10 greatest risks, prepared last year to the third place this time. While extreme weather conditions grabbed the highest position on the list, followed natural phenomena, there was a drop in the ranks of refugee crises, as well as terror attacks.