Business hackers pose risk to aviation manufacturing industry

In the aviation industry, the true scope of business hacking means that parts manufacturers are also at risk of becoming victims of cyber crime.

In the aviation industry cyber concerns tend to focus on air traffic control computer systems and the havoc that could be caused by a hacker. However, the true scope of business hacking means that parts manufacturers are also at risk of becoming victims of cyber crime. 

The 2013 Information Security Breaches survey, conducted by PwC on behalf of the Department for Business, Innovation & Skills found that 87% of small firms and 93% of large organisations experienced a cyber-security breach in 2012. Sir Iain Lobban, director of the intelligence agency GCHQ, commented that business secrets are being stolen on an “industrial scale”. 

A cyber-security breach poses a risk that is developing at an astonishing pace. Five years ago it was barely on our radars, but since 2011 it has rocketed from 12^th to 3^rd place on Lloyd’s of London’s 2013 Risk Index.

Aviation manufacturers, in common with most businesses, face issues around data and network security that can lead to the business losing revenue. An example might be the damages the business has to pay after accidentally infecting an email recipient’s network with a virus; or for breaching a contract if data is stolen or accidentally lost.

As manufacturers they face the additional risk of a hack or a virus disrupting the centralised computer network controlling the manufacturing systems, like Stuxnet, the virus that was supposedly created by the U.S. and Israel to paralyse the industrial control systems of Iran’s nuclear facilities.

Evidence shows that the computer control systems of smaller businesses are being targeted on a large scale. The experiment detailed in this article set up three targets that mimicked the temperature control systems in a small factory: over 28 days the systems were attacked 38 times from 14 different countries.  For aviation manufacturers, any interference with the computer system controlling the manufacturing plant can lead to businesses falling behind on orders, failing to fulfil contracts and suffering a loss of revenue.

RK Harrison, the Institution’s appointed partner for business insurance services, can offer members insight into specialist cyber insurance policies. These can manage the losses of revenue that can result from the disruption of production, failure to meet contractual obligations and even address the reputation costs of a cyber crime committed against a company. With industrial cyber crime on an upward trajectory, it could be time for aviation manufacturers to consider their exposure and take steps to manage it.

For further information about insurance services offered by RK Harrison: http://www.imeche.org/services/business/Insurance