Aon's 2025 Global Cyber Risk Report Reveals Reputation Risk Events Can Reduce Shareholder Value by 27 percent

Rhea-AI Summary

Aon's 2025 Cyber Risk Report reveals that cyber events causing reputational damage can lead to a significant 27% average decline in shareholder value. The study analyzed 1,414 cyber events, with 56 evolving into reputation risk events. This represents a substantial increase from 2023's findings of 9% shareholder value decline. Malware and Ransomware attacks were identified as the most damaging, accounting for 60% of reputation risk events while comprising only 45% of total cyber incidents. The report identified five key drivers for value recovery: preparedness, leadership, swift action, communication, and change. Additionally, the study emphasizes that while cyber insurance can help with financial exposure, reputational risk remains largely uninsurable, highlighting the importance of proactive risk management.

Positive

• Comprehensive analysis of 1,414 global cyber events providing valuable insights for risk management
• Identification of five critical drivers for value recovery from cyber incidents
• Development of Cyber Quotient Evaluation platform for streamlined cyber insurance processes
• Strong positioning to help clients navigate complex cyber threats

Negative

• Significant increase in shareholder value decline from cyber events (27% vs 9% in 2023)
• Malware and Ransomware attacks pose heightened reputational risks
• Reputation risk remains largely uninsurable
• Only 56 out of 1,414 cyber events developed into reputation risk events, suggesting difficulty in prediction

Insights

Cyber Risk & Insurance Expert

Aon's research shows reputation-damaging cyber events can slash shareholder value by 27%, positioning them as leaders in quantifying cyber risk impacts.

Aon's 2025 Cyber Risk Report reveals concerning data about the financial consequences of cyber attacks that evolve into reputation risk events. The research analyzed 1,414 global cyber events, finding that the 56 incidents that developed into reputation risk events caused an average 27% decline in shareholder value—a significant increase from the 9% decline documented in their 2023 research.

What's particularly notable is how certain attack types disproportionately trigger reputational damage. Malware and ransomware attacks comprised 45% of total cyber incidents but accounted for 60% of reputation risk events. This asymmetry highlights a critical risk factor companies must address in their security posture assessments.

The report identifies five key drivers that help companies recover from reputational damage: preparedness, leadership, swift action, communication, and change implementation. These findings represent valuable benchmarking data for organizations developing crisis response frameworks.

From an industry perspective, this research strengthens Aon's market position in cyber risk advisory services. By quantifying the financial impact of cyber events and showcasing their proprietary Cyber Quotient Evaluation platform, Aon is effectively demonstrating their value proposition in helping companies manage increasingly complex cyber threats that extend beyond mere technology concerns into core business and financial risks.

DUBLIN, June 17, 2025 /PRNewswire/ -- Aon plc (NYSE: AON), a leading global professional services firm, today released its 2025 Cyber Risk Report, revealing that cyber events that cause reputation risks can result in an average of 27 percent drop in shareholder value, highlighting the growing financial and reputational stakes of cyber risk.

The findings build on Aon's 2023 research, which showed that major cyber incidents led to an average 9 percent decline in shareholder value over the following year. This year's report goes further, analyzing more than 1,400 global cyber events and identifying which types of attacks are most likely to evolve into reputation risk events and which can be the most damaging when they do.

"Cyber risk is no longer just a technology issue — it's a boardroom issue," said Brent Rieth, global cyber leader at Aon. "Our latest research underscores the importance of proactive risk mitigation. Organizations that invest in preparedness and resilience are far better positioned to avoid the reputational and financial fallout that can follow a cyber event."

Among the report's key findings:

• Of the 1,414 cyber events analysed, 56 developed into reputation risk events, which are defined as cyber incidents that attract significant media attention and lead to a measurable decline in share price.
• Companies affected by these reputation risk events experienced an average shareholder value decline of 27 percent.
• Malware and Ransomware attacks were the most likely to trigger reputational damage, accounting for 60 percent of all reputation risk events, despite making up only 45 percent of total cyber incidents.
• Five drivers of value recovery — preparedness, leadership, swift action, communication and change — were identified as critical levers for mitigating reputational fallout.

The report also highlights the growing challenge of managing uninsurable risks. While cyber insurance can help transfer some financial exposure, reputation risk remains largely nontransferable, making proactive risk management and crisis response essential.

"As cyber threats grow more complex and interconnected, companies need a clearer view of their exposure, stronger alignment between cybersecurity and insurance strategies, and the tools to make better, data-driven decisions. Aon is uniquely positioned to support clients through these challenges," added Rieth.

Aon's 2025 Cyber Risk Report draws on proprietary data from the firm's Cyber Quotient Evaluation, a patented global e-submission platform that streamlines the cyber insurance intake process and empowers organizations with actionable insights into their cyber exposures and insurability — helping to strengthen both underwriting outcomes and cyber risk management strategies.

About Aon
Aon plc (NYSE: AON) exists to shape decisions for the better — to protect and enrich the lives of people around the world. Through actionable analytic insight, globally integrated Risk Capital and Human Capital expertise, and locally relevant solutions, our colleagues provide clients in over 120 countries with the clarity and confidence to make better risk and people decisions that protect and grow their businesses.

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SOURCE Aon plc

FAQ

What is the impact of cyber events on AON shareholder value according to the 2025 report?

According to Aon's 2025 Cyber Risk Report, cyber events that cause reputation risks can result in an average 27% drop in shareholder value, a significant increase from 9% reported in 2023.

What are the main types of cyber attacks causing reputational damage according to AON's 2025 report?

Malware and Ransomware attacks were the most damaging, accounting for 60% of all reputation risk events while making up only 45% of total cyber incidents.

What are the five drivers of value recovery identified in AON's 2025 Cyber Risk Report?

The report identified preparedness, leadership, swift action, communication, and change as the five critical drivers for mitigating reputational fallout from cyber events.

How many cyber events did AON analyze in their 2025 report?

Aon analyzed 1,414 global cyber events, of which 56 developed into reputation risk events that attracted significant media attention and led to measurable share price declines.

What is AON's Cyber Quotient Evaluation platform?

It is a patented global e-submission platform that streamlines the cyber insurance intake process and provides organizations with actionable insights into their cyber exposures and insurability.