As companies continue to adapt their business models to integrate the best business practices alongside developing technology, CEO’s and CFO’s must take into consideration the issue of cyber security, and develop a strategy to keep their business protected online as well as off. As top businesses become more and more reliant on digital goods and services, the number of cyber attacks will continue to increase in attempts to steal or damage these assets.
A Cisco survey recently indicated that nearly 87 percent of top executives expected their company’s cyber security spending to increase at least “significantly” over the next 12 months. So what are they spending so much money to protect? In addition to prevents losses due to cyber threat, cyber defense strategies are now also seen as a way to equip companies with a shield against attacks that target knowledge and innovation, two key drivers of company growth.
This trend emphasizes the need for businesses to develop a security strategy that can withstand the attacks from cyber spies, corporate espionage and hackers looking to bring down networking systems. The company that fails to protect itself can experience catastrophic damage in a very short period of time.
With this as a background, consider the additional following reasons as to why companies are justified in allocating more funds to cyber security.
When a cyber attacks happens, it affects more than just a single business
One of the biggest threats of a cyber attack on a business is not simply the unintended exposure of the company, but also the risk that valuable client information can be stolen, breaching personal and corporate security measures.
Earlier in 2017, Verizon learned this lesson first hand after millions of customer records were exposed following a security lapse. This particular incident occurred due to an unprotected server comprised by an employee of a third-party contractor.
In addition to beefing up its security options and a thorough review of partner-contract relations, Verizon must also gain back the trust of its customers.
In B2B operations, cyber attacks become increasingly more dangerous when commercial security requires network monitoring of multiple networks. Businesses must ensure that each corporation engagement occurs through a safe and secured connection that will not lead to a system’s compromise.
The financial implications of a large-scale cyber attack can be staggering
Businesses depend on steady and predictable revenue streams and a disruption of this process for even a single day can be a major disruption for large corporations. While a direct attack on company financial information, may appear to be the most threatening form of attack, any assault that prevents a business from operating normally can make a huge dent in a company’s profitability, adding an unwanted force into a market equation. As the global market place continues to grow, companies must understand that these factors are important to consider in developing a strong digital defense strategy.
After Target’s high-profile cyber security breach back in 2013, the company was left trying to mitigate a massive $162 million hole in their budget after the loss of shopper credit cards and lost sales. Other high-profile losses include Sony-PlayStation ($171 million), TJ Maxx ($162 million) and Sony Pictures ($100 million).
A strong, secure network can quickly become a competitive advantage for a company
By investing more budget and jobs into defending network security, companies minimize a weakness while also enlarging a potential strength. Nothing will strengthen investor’s confidence more than knowing that company innovations and digital assets are safely stored and protected from any number of attacks. Companies that develop commercial security excellence are free to continue the process of digital transformation uninhibited by outside threats.
With data-driven business models changing the nature of competition, companies must remain innovative in how they choose to build and secure network systems if they are going to have the speed and capacity to compete in digital markets.
On example of this is the mobile market, which has grown by the billions over just a few short years requiring companies everywhere to scale up in technology in order to remain connected to consumers. As companies continue to the push to digitize all that can be digitized, growing the bottom line of a business depends on a company’s ability to securely innovate, react, and respond appropriately to developments in technology.If you enjoy the content at iBankCoin, please follow us on Twitter