Page 13 - Risk Management Bulletin April-June 2022

RMAI BULLETIN APRIL - JUNE 2022

THE FUTURE OF

CYBER RISK

MANAGEMENT –

PREDICTING

BREACHES

“Progress is impossible without change, and those who disrupted the automobile industry. This isn’t to say that
cannot change their minds cannot change anything”, advancement was not being made until the entry of
said the prolific writer and critic, George Bernard Shaw. these companies. It is rather an evidence of our
The quote rings especially true for cybersecurity today, increasing reliance on ‘cyber’ for progress. But this has
where the progress against the threats it faces has had a resultant increase in the number &
been slow moving. On 7th March 2022, Samsung sophistication of cyber threats we face too. While
confirmed an attack by the Lapsus$ ransomware that adopting technology, it is crucial to think of
has also targeted giants such as Microsoft, Okta and cybersecurity by design, and not an afterthought.
Nvidia. The group claimed access to nearly 200GB of
data, including the source code used by Samsung for The timeline till now
encryption and biometric unlocking functions on
Galaxy devices. As per the World Economic Forum Global Outlook
Report 2022, the cost of security breaches to an
The growth and interconnectedness of devices and organization amounts to an average of US$ 3.6 million
platforms, and its usage in our daily lives has truly per incident. In fact, according to a NASDAQ report,
changed the way technology is being used – from back 14 market days after a breach becomes public, the
office automation to a business enabler. Traditional average share price bottoms out and underperforms
businesses have been disrupted by technology – the NASDAQ by -3.5%. This implies that a breach
AirBnB disrupted the impacts trust in the company, which is directly felt at
About the author hospitality industry, the top and bottom line. Beyond economic losses, the
Saket Modi Uber disrupted the reputational consequences for brands and businesses
Voices, India, Tech t r a n s port a tion after an incident can be significant – a clear case of
industry and Tesla fundamentals impacting sentiment.

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