Cyber risk management in Sweden: The need for a holistic approach

As cyber threats grow more sophisticated and frequent, Swedish companies face an uncomfortable reality: neither technology solutions nor cyber insurance alone are enough to protect against this evolving risk. Companies need a more holistic approach to manage and mitigate the fallout from cyberattacks.

From ransomware to social engineering scams, the stakes of cyberattacks are higher than ever. During 2024, Sweden suffered a series of high-profile cyberattacks that had significant financial and reputational damage to companies and local authorities.

“Companies can no longer afford to view cybersecurity as just an IT problem,” warns Roman Kovalchuk, Marsh’s Head of Cyber Consulting Nordics.

“The risks are strategic, operational, and reputational. And they require a comprehensive, end-to-end approach to manage effectively.”

Lessons from real-world attacks

Furthermore, ransomware attacks accounted for 25 percent of reported cyber claims in the Nordics, with malicious actors increasingly targeting IT service providers to amplify the impact. Social engineering tactics like phishing scams were also widely reported, often leading to financial fraud or data breaches.

“What’s particularly concerning is the geopolitical dimension,” says Kovalchuk.

“The tactics we see in Europe are being mirrored in the Nordics, but the added layer of political instability makes these attacks even more damaging.”

Swedish companies hit by cyberattacks face a long road to recovery. Restoration costs alone can skyrocket, as detailed documentation is required for insurers to process claims. The financial impact doesn’t stop there; cyber-attacks that trigger business interruptions often result in significant revenue losses and profit reductions, as well as contractual liability losses and customer churn due to reputational damage.

A four-step model for cyber risk management

So, what’s the solution? Marsh recommends a holistic, four-step approach to cyber risk management to ensure companies are better equipped to address today’s increasingly complex cyber threats.

1. Understanding the threat landscape

A successful cyber risk strategy begins with understanding potential vulnerabilities. This means more than conducting internal audits—it involves analysing external threats, such as a company’s exposure on the dark web.

“Every attack starts with reconnaissance,” Kovalchuk explains.

“Hackers analyse your digital footprint to find weaknesses. If you’re not monitoring that, you’re already a step behind.”

Organizations can also regularly conduct risk assessments, ethical hacking exercises, and vulnerability analysis to uncover blind spots and prioritize improvement of cyber security measures.

2. Mitigating the risks

Prevention is paramount. Companies must focus on bolstering basic cyber hygiene, including multi-factor authentication (MFA), network segmentation, and robust patch management.

“Preventive measures are like locking your doors and windows at night,” says Kovalchuk.

“They won’t stop every thief, but they’ll make it much harder for one to get in.”

The benefits extend beyond security. Demonstrating compliance with new EU regulations like NIS2 and DORA can protect organizations from legal penalties and ensure business continuity.

3. Transferring risks through insurance

While cyber insurance is a critical safety net, it must complement, not replace, other risk management efforts. Insurance should only cover the residual risks that remain after all preventive measures are in place.

“Insurers are increasingly demanding proof of robust controls before issuing coverage,” Kovalchuk notes.

“It’s no longer enough to just buy a policy—you need to show you’ve done the work to protect yourself.”

Proper documentation during and after an incident is also crucial. Maintaining detailed records of costs and recovery efforts can help significantly expedite the claims process.

4. Reacting effectively to incidents

Even the best defences can fail, which is why a solid response plan is essential. Marsh recommends frequent testing of incident response and disaster recovery plans, ensuring all stakeholders—including insurers and external vendors—are aligned.

“Crisis management is as much about preparation as it is about execution,” says Kovalchuk.

“Quick, informed decisions can mean the difference between a manageable incident and a catastrophic one.”

Why companies in Sweden need a holistic approach

With its high level of digitalization, Sweden is uniquely vulnerable to cyber threats. While regulations like NIS2 and DORA aim to enhance resilience, companies must take proactive steps to protect themselves.

“Sweden has a strong foundation, but the risks are evolving too quickly for companies to rely on outdated approaches,” says Kovalchuk.

“A holistic model not only mitigates risks but also positions organizations to recover faster and more effectively when attacks happen.”

As cyberattacks grow more hostile and complex, the message is clear: a piecemeal strategy isn’t enough.

Swedish companies must act now to adopt a comprehensive approach, balancing prevention, response, and recovery. Because in today’s digital landscape, the cost of inaction is far too high.

Want to learn more how to implement a holistic approach to cybersecurity in your organization?

Feel free to email Roman Kovalchuk at [email protected] or connect with him on LinkedIn https://www.dhirubhai.net/in/roman-kovalchuk-335b0963/ to continue the discussion and explore these topics further.

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