Four in five organisations state that a comparable and consistent format for mandatory disclosure of cyber incidents is necessary
One in four companies (27%) globally have suffered a data breach that cost them USD1-20 million (THB38-763 million)[1] or more in the past three years, according to PwC’s annual Global Digital Trust Insights Survey, which surveys more than 3,500 senior executives across 65 countries. The percentage rises to one in three (34%) for companies surveyed in North America, with only 14% of firms globally reporting that no data breaches have occurred during the period.
Despite cyber attacks continuing to cost businesses millions of dollars, fewer than 40% of executives surveyed say they have fully mitigated cybersecurity risk exposure in a number of critical areas. This includes, enabling remote and hybrid work (38% say the cyber risk is fully mitigated); accelerated cloud adoption (35%); increased use of internet of things (34%); increased digitisation of supply chain (32%) and back-office operations (31%).
For operations-focused executives surveyed, cybersecurity of the supply chain is a major concern. Nine in ten expressed concerns about their organisation’s ability to withstand a cyber attack that disrupts their supply chain, with 56% extremely or very concerned.
Mandatory disclosure of cyber incidents is favoured
Four in five organisations (79%) surveyed state that a comparable and consistent format for mandatory disclosure of cyber incidents is necessary to gain stakeholder confidence and trust. Three-quarters (76%) agree that increased reporting to investors will be a net benefit to the organisation and entire ecosystem. Further, the same percentage agree that governments should be expected to use the knowledge base from mandatory cyber attack disclosures to develop cyber defence techniques for the private sector.
While there is a clear preference for mandatory disclosure of cyber incidents, fewer than half (42%) of executives surveyed are fully confident their organisation can provide required information about a material/significant incident within the specified reporting period. There is also a hesitance to share too much information – 70% said greater public information sharing and transparency poses a risk and could lead to a loss of competitive advantage.
Sean Joyce, Global Cybersecurity and Privacy Leader, US Cybersecurity, PwC US said: “Data breaches are a pervasive threat in today’s digital world. As cyber threats continue to increase in frequency and sophistication, a holistic approach to cybersecurity has become a top priority for C-suites and boards. Companies are strengthening their cyber defences and regulators are applying pressure to improve cyber resilience and build public trust. It’s clear from our survey that a higher level of public-private collaboration is needed to address the increasingly complex cyber threat landscape – companies are calling for increased information sharing and transparency as well as a consistent format for mandatory disclosure of cyber incidents.
Most organisations are increasing cyber budgets
The majority of executives surveyed said their organisations are continuing to increase their cyber budgets – 69% said the budget increased in 2022 and 65% plan to spend more on cyber in 2023. Increasing budgets reflect the fact that cybersecurity tops the agenda for resilience planning. According to the survey, a catastrophic cyber attack ranks higher than global recession or another health crisis for organisations’ resilience planning.
Concern with cyber extends to the top of organisations. Most CEOs surveyed are planning to ramp up action to address cybersecurity in the coming year – 52% said they will drive major initiatives to improve their organisation’s cyber posture. Many CFOs surveyed are also planning to increase their cyber focus, including cyber technology solutions (39%), focus on strategy and coordination with engineering/ operations (37%) and upskilling and hiring of cyber talent (36%).
It’s not hard to see why cyber continues to move up the corporate agenda. The cost of cyber breaches goes much further than direct financial costs, according to marketing-oriented execs surveyed. The range of harm organisations have experienced due to a cyber breach or data privacy incident over the past three years include loss of customers (cited by 27%), loss of customer data (25%) and reputational or brand damage (23%).
Sean Joyce concluded: “Despite all the progress that organisations have made in improving their cybersecurity programs, our survey shows there is a lot more to do. There are three things that need to be put in place to keep pace with digital transformation and help build public trust: a strategic risk management program, continuity and contingency planning, and clear, consistent external reporting.”
Phansak Sethsathira, Risk Consulting Partner at PwC Thailand, added that businesses in Thailand are also facing greater cyber attacks, partly due to increased adoption of digital technology. Ransomware, which is malware designed to hold a victim’s files at ransom, has been the most common cyber threat in the country this year.
“The rising number of cyber attacks have pushed Thai organisations to consider cybersecurity investment to mitigate reputational damage and financial risk,” Phansak said.
“During the COVID-19 crisis, companies significantly accelerated digital adoption in areas such as ecommerce, mobile banking and remote working. As a result, many organisations have increased their cybersecurity budgets over the last two to three years. However, cybersecurity awareness and investment are still lacking with most companies only realising its importance when exposed to the threat.
“Businesses must raise cybersecurity awareness across all levels. It’s important to appoint an expert who is responsible for data protection and IT infrastructure security. Another vital step is implementing effective employee communication on the importance of cybersecurity while ensuring those at executive level demonstrate best practice as role models for the organisation,” Phansak said.
[1] USD1 = THB38.18 (as of 19 October 2022)
Source: PwC Thailand