Management Consulting

The food, agricultural, and beverage (FAB) sector faces significant vulnerabilities related to cyber risk, particularly due to its tight margins and historical underinvestment in cyber resilience. Aon’s analysis highlights that many businesses in this sector are ill-prepared for the potential consequences of a cyber-attack, which can lead to extensive non-damage business interruptions. For instance, a cyber-attack affecting food irrigation systems, which are predominantly supplied by a single organization, could result in widespread operational disruptions across multiple sites, amplifying the commercial impact. Aon’s findings indicate that the FAB sector has a low maturity level in terms of cyber resilience, primarily because companies prioritize product quality, safety, and cost over cybersecurity investments. This lack of focus on cyber risk is exacerbated by the sector's reliance on technology without adequate resources to manage potential threats. Farmers and other stakeholders often lack the technical expertise to safeguard their operations, making them prime targets for cybercriminals. To address these challenges, Aon recommends a structured approach to improving cyber resilience, which includes accountability from the C-suite, a comprehensive enterprise risk management strategy, a focus on preventive measures, and the protection of financial assets. Given the sector's narrow profit margins, even short operational shutdowns can lead to liquidity issues. Aon advises FAB companies to identify critical technology assets and assess potential financial losses from cyber incidents. This involves conducting scenario analyses to understand the implications of cyber threats on their operations. Moreover, Aon emphasizes the importance of reviewing insurance coverage, as many FAB companies mistakenly believe they are adequately protected under existing property damage or general liability policies. The case of Mondelez, which faced a significant financial loss due to a ransomware attack and subsequent insurance disputes, underscores the necessity for dedicated cyber insurance policies. Aon’s insights aim to bridge the gap in cyber insurance uptake within the FAB sector, ensuring businesses are better equipped to handle cyber threats and protect their operational integrity.