Digital transformation is, in essence, a must for companies nowadays. It can help them gain a competitive advantage and increase customer satisfaction. It is a strategic process that helps companies grow and improve their internal processes. In other words, digital transformation is a way to increase customer satisfaction by enhancing internal processes while improving their ability to deliver products/services faster than before.
However, this transformation of businesses comes with its challenges. The latest statistics on third party risk for digital businesses show that the most alarming flaw is that of cyber attacks.
One of the dark sides of digital transformation is that it can be an invitation for cyber criminals. Cyber attacks are a growing problem. They can cause financial loss, damage your reputation, and even affect your business’s bottom line.
Recent statistics show that cyber attacks have increased since 2013, with an estimated $5 trillion lost yearly due to these incidents (according to the University of Waterloo). It also shows that these attacks are increasing across all industries at a rate of 20% yearly.
According to IBM Security’s 2017 Global Mobile Threat Report (GMR), mobile malware has risen by more than 50 percent since 2016. On the other hand, Verizon’s 2017 Data Breach Investigations Report found more than 200 million data breaches globally between 2013-2017—with 80% of those coming from small businesses.
Which industries are more at risk?
The most common industries targeted by cybercriminals are financial services and retail, followed by media and entertainment, telecoms, and transportation. Energy companies are also a common target for cybercriminals.
The manufacturing industry is less likely to be targeted because it has higher security than other industries like banking or insurance companies. But it is not immune to cyber threats. This sector has been slow to adopt new technologies like IoT and blockchain due to concerns about how data privacy could be compromised.
How Should Businesses Survive The Cyber Attacks?
The first thing to understand is that most hackers are not malicious. They do not want to steal your data. They wish to access it. Regardless, businesses can only safeguard themselves by boosting their digital security.
It must be understood that the more sensitive the data, the more likely it will be targeted by hackers. For example, financial services firms and retailers have much higher security measures than manufacturing companies or telecom providers. So, it shows these industries are more likely victims of cyber criminals than others.
Also, there’s no way around it. In other words, escaping cyber attacks is impossible. Companies that do not have an in-house dedicated IT team to combat these must hire an outsourcing partner.
Such a service provider will do everything from keeping systems secure against intrusions such as malware attacks through regular maintenance requirements when things inevitably go wrong.
If you’re a business owner or manager, digital transformation is a must. But it also comes with risks. The latest statistics on third party risk for digital businesses have made it quintessential for organizations to secure their security. The best solution is to hire a cybersecurity service provider.