Hartford Steam Boiler released a study on May 17, 2016, that states that nine out of ten businesses have experienced at least one hacking incident in the past year, which represents a 21 percent increase since 2014.

The survey of risk managers showed that 64 percent of risk managers admitted that their organization had experienced more than six hacking incidents in the past year, which is a 32 percent increase over 2015.

Nonetheless, businesses continue to embrace Internet of Things devices for improved productivity and efficiency, despite the risks associated with the devices. According to the study, 56 percent of business say they will implement or plan to implement IoT devices, while only 28 percent felt they were safe for business use.

Surprisingly, the study showed that the risk management strategies that those surveyed are implementing include an increase in encryption technology, but a decrease in intrusion detection/pen testing, and a significant decrease in employee education (only 12 percent use employee education programs, down from 24 percent last year.)

Employee education is an essential part of a risk management program. The decrease in employee education programs is concerning and companies may wish to re-evaluate that strategy. Although encryption is key to a risk management program, it is not the panacea.