Fast facts: Industry’s cyber threat
ROUND-UP FEBRUARY 2019
In Depth 89%
have seen an
increase in
cyber attacks
40%
77%
say the cost of
cyber protection
testing is too high
have faced a
cyber threat in
the past year
BAE Systems secures 400 jobs
with new military joint venture
BAE Systems and German defence
contractor Rheinmittal have
signed an agreement to form a
joint, UK-based military vehicle design,
manufacturing and support business.
The new collaboration will be based
at BAE Systems’ facility in Telford, and
will sustain over 400 UK jobs, as well
as preserve key skills in the region.
In addition to managing and growing
the existing combat vehicle support
business, the intent is for the new
company to play a major role in the
delivery of the British Army’s new
Mechanised Infantry Vehicle (MIV)
and other strategic combat vehicles
programmes. Once approvals have
been completed, the joint venture will
be known as Rheinmetall BAE Systems
Land (RBSL).
The combination of Rheinmetall’s
military vehicles technology and
products with the additional capabilities
and products brought to the joint
venture by BAE Systems, such as Trojan,
Terrier, Warrior, military bridging and
the AS90 self-propelled artillery system
will create a European market leader
in the military vehicle sector. RBSL will
have the potential to create hundreds
of additional UK jobs, both in Telford
and the wider supply chain. While
initially focused on these major UK
programmes, RBSL will also form an
integral part of Rheinmetall’s Vehicle
Systems Division and will participate
in and contribute to various global
military vehicle pursuits and contracts.
“Joining forces with Rheinmetall in
the UK provides renewed purpose for
our vehicles business and allows us to
deliver products, services and technology
that help land forces excel in their
vital roles,” said Jennifer Osbaldestin,
managing director of BAE Systems Land
UK business.
Industry faces £2bn
cyber security bill
The shockingly high cost of protecting
against cyber attacks has been revealed,
with the manufacturing industry paying
out over £2.1bn annually to combat the
growing threat of data breaches and
system outages.
Research from AVORD – a new
security testing platform – reveals
that 89% of manufacturers have seen
an increase in the number of data
breaches over the last five years.
Opportunistic multi-national
consultancies are being blamed for
inflating the price of security testing in
the UK, with many manufacturers being
charged inflated prices to conduct tests
on their critical assets. And with
increasing fines for manufacturers found
to be in breach of industry regulations,
the cost of hacking can be huge.
The findings put the spotlight firmly
on the security testing market, which
is dominated by consultancies who
provide services to businesses,
sometimes at twice the daily rate of
an independent tester. With 77% of UK
businesses claiming the cost of testing
is too expensive, there is a clear demand
amongst the industry for change.
Over three-quarters of manufacturers
outsource their cyber security testing
according to the research, with 73% also
increasing the level of security testing
on the Internet of Things (IoT).
Worryingly, 40% of manufacturing
companies have battled an online
security breach in the past 12 months,
which have directly hit their bottom lines
through a combination of costly fines
and loss of business.
Brian Harrison, founder and CEO
of AVORD, commented on the survey:
“Companies are struggling to cope
with the ever-increasing threats
impacting on their attempts to secure
systems at current costs. Unless
something changes, businesses will be
forced to cut corners, and this will
inevitably mean there are more data
breaches and system outages.”
BAE Systems
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