SilverStorm Blog

Cyber security is becoming a strategic goal

Posted by David de Matias Batalla on Feb 21, 2018 12:42:08 PM
Find me on:

Companies suffer the greatest damage as a result of cyber security incidents relating to their partners, according to research. This is the finding of a study examining whether cyber security is a cost centre or a strategic investment by Kaspersky Lab and B2B International.

Incidents affecting infrastructure hosted by a third party cost small businesses £106,000 on average, while large enterprises lost nearly £1.5m as a result of breaches affecting suppliers they share data with, and £1.2m because of insufficient levels of protection at providers of infrastructure as a service (IaaS).

These findings indicate that companies should not only invest in their own protection, but also pay attention to that of their business partners. As soon as a business gives another organisation access to its data or infrastructure, the report said weaknesses in one may affect them both.


There is a growing list of examples of data breaches that can be traced to third-party suppliers, from the Target breach in 2013, to more recent cases such as insider trading by hacking newswire services and fraudulent tax claims by compromising a feature on the US Internal Revenue Service website that was hosted by a third party. This issue is becoming increasingly important as governments worldwide introduce legislation requiring organisations to provide information about how they share and protect personal data.

“While cyber security incidents involving third parties prove to be harmful to businesses of all sizes, their financial impact on a company has the potential to result in twice as much damage,” said Alessio Aceti, head of the enterprise business division at Kaspersky Lab. “This is because of a wider global challenge – with threats moving fast, but businesses and legislation changing slowly. When regulations like GDPR [General Data Protection Regulation] become enforceable and catch up with businesses before they manage to update their policies, the fines for non-compliance will further add to the bill,” he said.

According to the study, 63% of companies are investing in cyber security regardless of return on investment (ROI).  However, the study also shows that businesses around the world are starting to view cyber security as a strategic investment, and the share of IT budgets that is being spent on IT security is growing, reaching almost a quarter (23%) of IT budgets in large corporations.

This pattern is consistent across businesses of all sizes, including very small businesses where resources are usually in short supply. However, while security appears to be receiving a larger proportion of the IT budget, the overall budget is getting smaller. For example, the average IT security budget for enterprises in absolute terms dropped from £19.2m in 2016 to £10.3m in 2017.

As security budgets shrink, the cost of security breaches is going up. In 2017, small to medium-sized enterprises (SMEs) are paying an average of £66,800 per security incident, compared with £65,900 in 2016, while enterprises are facing costs of £756,000 in 2017, up from £655,000 in 2016.

secops servicenow en.jpg


More Information

Source: ComputerWeekly

Topics: Digitaltransformation, CIO, ServiceNow, servicemanagement, CEO, Technology, Cloud, devops, security, cyber security

SilverStorm Solutions

SilverStorm bridges the gap between the strategy and the transition for business-orientated service management. We listen to what our customers want to achieve; their success is what as a company, and, as an individual, counts.
We deliver next-generation service management as part of the digital transformation that our customers wish to achieve. We innovate by adopting disruptive technologies that focus on the business operation and the IT infrastructure. We solve our customers' challenges to create business services that manage heterogeneous environments across a hybrid platform.
Our DNA does not permit us to settle for anything less than excellence within every group of the company.

Subscribe to Email Updates

Recent Posts