Report Warns: Cyber Incidents in Operational Technology Could Result in Costs of $329.5 Billion
Dragos, in partnership with Marsh McLennan’s Cyber Risk Intelligence Centre, has released the 2025 OT Security Financial Risk Report, which outlines the potential financial ramifications of operational technology (OT) cyber incidents and controls. The report estimates that global risk exposure from OT cyber incidents could soar to USD $329.5 billion in extreme scenarios. Notably, it highlights that 70% of OT-related breaches lead to indirect financial losses, which are frequently overlooked by traditional risk models. The study employed a decade’s worth of breach and insurance claims data, utilising tens of thousands of simulations to create a pioneering statistical model that correlates OT security controls with reductions in financial loss.
The analysis indicates that, in a severe yet plausible event occurring once every 250 years, global OT cyber losses could reach USD $329.5 billion, with OT-related business interruptions accounting for USD $172.4 billion of that total. Three OT security controls were identified as most effective in reducing risk: incident response planning could yield an average risk reduction of up to 18.5%, defendable architecture could provide up to 17.09%, and ICS network visibility and monitoring could achieve up to 16.47%. Executives are increasingly held accountable for managing cyber risks, yet many still lack a comprehensive understanding of OT environments. The ability to quantify OT cyber risk and link it to potential financial losses represents a significant advancement. This report addresses a critical gap by translating OT security into measurable financial risk and evaluating controls designed to mitigate that risk.
Categories: OT Cyber Risk Assessment, Financial Impact of Cyber Incidents, Challenges in OT Security Management
Tags: OT Security, Cyber Incidents, Financial Risk, Risk Reduction, Incident Response, Business Interruption, Regulatory Pressures, Insurance Claims, Risk Management, Security Controls