Many technology executives don’t have a favorable outlook on their ability to sideswipe cybercriminals, according to research conducted by McKinsey and World Economic Forum.
The research also shows that both big and small businesses lack the ability to make sturdy decisions, and struggle to quantify the effect of risk and resolution plans. As the report authors state, “Much of the damage results from an inadequate response to a breach rather than the breach itself”.
These results come from interviews with more than 200 business leaders such as chief information officers, policy makers, regulators, law enforcement officials and technology vendors spanning the Americas, Europe, Asia, Africa and the Middle East.
Cybercrimes are extremely costly and the cost can hit the trillions of dollars mark.
Several concerning trends regarding how decision makers in the business world perceive cyber risks, attacks and their fallouts were apparent in the research findings:
- Over 50 percent of all respondents, and 70 percent of financial institution executives, think that cybersecurity is a big risk. Some executives believe that threats from employees equal those from external sources.
- A majority of executives envision that cyber criminals will continue being a step ahead of corporate defenses. 60 percent believe that the gap between cyber crooks and corporate defense will increase, with, of course, the crooks in the lead.
- The leaking of proprietary knowledge is a big concern for companies selling products to consumers and businesses.
- Service companies, though, are more worried about the leaking of their customers’ private information and of disruptions in service.
- Large organizations, says ongoing McKinsey research, reported cross-sector gaps in risk-management competency.
- Some companies spend a lot but don’t have much sophistication in risk-management capabilities, while other companies spend little but are relatively good at making risk-management decisions. Even large companies can stand to improve their risk management capabilities substantially.
Robert Siciliano is an Identity Theft Expert to AllClearID. He is the author of 99 Things You Wish You Knew Before Your Identity Was Stolen See him knock’em dead in this identity theft prevention video. Disclosures.