In 2022, Security failures cost companies worldwide $1 Trillion
According to a recent study by Allied Universal, security incidents cost businesses $1 trillion globally along with double-digit declines in stock prices and corporate value.
The biggest threat to security during the coming year is anticipated to be economic unrest. The study defines economic unrest as a security-impacting societal disturbance, such as political instability, war, climate change, pandemics, recession, inflation, or interest rate increases. The World Security Report, based on the opinions of 1,775 chief security officers in 30 nations, also comes to the conclusion that businesses should prepare for an increase in economic unrest.
The main internal threat anticipated by organizations is information leakage. Fraud (or deception intended to produce gain) is projected to be the biggest external threat during the next year. Threats presented by hackers, spies, and economic criminals are also anticipated to increase.
Security Threat and Incident Findings
- Up from 39% the year before, 47% of respondents saw economic instability as the biggest threat to security in the coming 12 months.
- Events related to climate change are becoming more frequent and are the second most worrisome threat, according to 38% of respondents. Following these were social disturbance (35%), interruptions in energy supplies (33%), and war or political instability (32%)
- According to 36% of respondents, the biggest internal threat over the next 12 months will be the leak of sensitive information.
- The most frequent internal issue was the misuse of corporate assets or data, which 35% of businesses had already dealt with in the year prior.
- According to 25% of CSOs, fraud would be the top external concern in the upcoming year.
- The most frequent external security incidents during the past 12 months (23%) involved fraud, phishing, and social engineering.
- Hackers, economic criminals, and spies pose a big threat, and 50% of respondents, said they were likely to be affected by these groups, up from 39% in the previous year.
- Nine out of ten CSOs are currently more worried about cyber security than physical security.
What This Means for You
In the previous 12 months, one in four businesses experienced a decline in company value as a result of an external or internal security event. The report polled 200 international institutional investors in addition to CSOs to better understand how security incidents affect the value of publicly traded companies. In the aftermath of a big internal or external security event in the previous 12 months, investors projected an average 29% decline in stock price.
Steve Jones, chairman and CEO of Allied Universal, says the survey demonstrates the multifaceted nature of the effects that security risks have on businesses, ranging from lost productivity and clientele to potentially crippling financial consequences.
Imagine your organization as a house with a fence, the fence is your firewall which can be penetrated by intruders. Continuing this metaphor, Tx Systems can offer you an incredibly strong front door lock: helping you keep intruders out when they inevitably try to attack and make it past your fence. Do not let your organization fall victim to cyber security threats. The easiest way to help secure valuable information is by controlling who has access to it. Tx Systems specializes in identity authentication and access control. Allow our team to help you safeguard against impending security threats.
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