Open and digitally inter-connected technology platforms are shaping future of businesses. As the migration to digital platforms happen, hackers get more ground to target for financial gains via multiple mediums such as ransom, sensitive information exposures, corporate espionage, identity theft etc. One of the latest example of extortion from a corporate is HBO corporations. After cyber criminals got access to their database they leaked an episode of the famous show “Game of Thrones”, threating to leak more if the demands of ransom are not met.
However, many studies by leading bodies such as Mckinsey, WEF etc have concluded time and again that companies are not adequately prepared with the cyber risk management. Most companies also have difficulty quantifying the impact of risks and mitigation plans. Major part of the damage results from an inadequate response to a breach rather than the breach itself.Only a few CEOs realize that the real cost of cybercrime stems from delayed or lost technological innovation—problems resulting in part from how thoroughly companies are screening technology investments for their potential impact on the cyberrisk profile.
Areas of concern
The perception of cyber risks by business leaders is worrisome as a persistent global thought is cyber security is a strategic risk and more sophisticated attacks will follow the course of action only with higher frequency.
Assessing the business impact of these attacks technology companies fear the leakage of proprietary information or corporate espionage. Companies is the area of services are more concerned about sensitive customer information which can be misused.
The situation on the level of readiness is not very pleasing. In a Mckinsey survey it was concluded that about 95 out of 100 global companies surveyed were either developing or at a nascent stage of cyber risk management capabilities.
The whole fear of the unknown is starting to have measurable negative impact on businesses from changing the way R&D efforts are done in high-tech firms to adaptability of the cloud computing, mobile technologies as well as health care tech are getting delayed.
A global price
Companies are paying a price in terms of loss of value creation as well as in terms of leap frog we could make. Cyber-attacks are effectively slowing the progress companies could make. It directly affects the topline of the companies.
The way ahead
Boards or CEOs need to address these risks at the policy level. Not just put it on paper but ensure that security becomes a part of the culture of the company. Using the latest products for threat detection and mitigation is equally important. Differentiating data sensitivity and providing for different levels of security is equally essential. Also, vulnerability tests need to be part of regular drill. Prevention is the best cure against cyber-attacks.