The mass deployment of smart technologies is
transforming the traditional electricity grid system into a smart grid. But,
this spending boom has outpaced the adoption of industry-wide safety and
security best practices – leaving the sector vulnerable to cyberattacks and
significant financial losses.
The Smart Grid Risk Snapshot, released today by the World Economic Forum, shows what is at stake,
highlighting how much attacks on a smart grid would cost and outlining
risk-mitigation strategies.
The utility and energy sector ranks the second highest in terms of predicted losses per company from a cyberattack, with an
estimated $17.2 million per company per year. The financial services industry
takes the top spot with an estimated $18.2 million in losses per company per
year from cybercrime. The cost of a cyberattack on the smart power grid in the
United States, for example, could be $1 trillion – roughly eight times the cost of the Fukushima nuclear disaster clean-up.
A six-hour winter blackout in France could result in over $1.7 billion in damages.
“Fast-paced investment in IoT has brought the
industry to an inflection point,” said Karime Kuri…
