Long-term impact of data breaches

Up to US$223B from the top brands around the world could be lost due to data breaches.

Leading brands from across section of industries not only face loss of valuable data when it comes cyber security breaches, but they also face loss of brand value.

Industries such as technology, financial services and automotive might suffer a higher overall brand value at risk from data breaches, whereas Luxury brands and Consumer Goods face greater value at risk as a percentage of their net income.

The potential risk in brand value of a data breach to the world’s 100 most valuable brands could amount to as much as USUS$223B, according to a joint cybersecurity and brand value impact report recently launched by Infosys and Interbrand. The report, titled ‘Invisible Tech. Real Impact’, examines the long-term impact of data breaches on value of the world’s top brands across sectors.

To quantify this risk, Infosys and Interbrand identified the brand factors most impacted when a company suffers a data breach – presence, affinity, and trust – and simulated the resulting brand value at risk in the event of a breach, using Interbrand’s proprietary brand valuation methodology.

Results for various industries includes:

  • Technology – Up to US$29B brand value risk (up to 53 percent of 2020 net income)
  • Financial Services – Up to US$2.6B brand value risk (up to 52 percent of 2020 net income)
  • Automotive – Up to US$4.2B brand value risk (up to 77 percent of 2020 net income)
  • Consumer Goods – Up to US$5B brand value risk (up to 114 percent of 2020 net income)
  • Luxury – Up to US$2.4B brand value risk (up to 115 percent of 2020 net income)

Cybersecurity for long was seen as a cost of doing business. However, in this digital age, where a company’s reputation is based on its ability to protect customer data and establish digital trust, cybersecurity is becoming a business differentiator, said Vishal Salvi CISO and head cyber security practice at Infosys.

He noted the novel approach of quantifying the impact of a data breach to the brand value to help businesses understand and evaluate if the cybersecurity investments they are making are proportionate to the risk they face.

“It also reinforces the need for CISOs to engage with the board and build a robust governance ecosystem while employing a ‘secure by design’ approach to safeguard their brand value and reputation,” he said.














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