How can business leaders better manage threats and hasten digital transformation?
Businesses of all shapes and sizes are trying to carve out a competitive advantage by leveraging digital information. The most cutting-edge companies harness customer preference data to create personalised services and targeted marketing campaigns, scrutinise employee performance data to drive productivity, and analyse supply chain information to drive efficiencies. And that’s just the tip of the iceberg.
This offers huge potential, but also creates vulnerabilities and interdependencies between previously discrete threats. This is particularly the case for cyber security and data privacy risks, which are now linked due to the increased use of personal data. For example, data breaches can result from a cyber attack, but have data privacy implications.
But business leaders’ attempts to come to terms with the changing nature of these threats is hampered because they devote so much time to data privacy. Tellingly, two-thirds of businesses focus more effort on mitigating data privacy than on cyber security risks, according to Grant Thornton’s latest International Business Report (IBR) survey. And the majority (59%) are actively preparing for the next wave of privacy regulation.
That’s no surprise, given the proliferation of data privacy regulation. But cyber threats have also soared. The number of cyber attacks causing losses in excess of $1m have increased by 63% during the past three years.[i]
So to make sure nothing falls through the cracks, and to better deal with the complexity of interlinked threats, business leaders must review then renew the way they manage cyber security and data privacy risk. We call this digital risk.
But where should those leaders start? The IBR survey provides some answers by asking senior executives about their weak points in managing digital risk.