Large Indian firms lose nearly $10 M due to cyberattacks, says study
The damage caused from cyberattacks is not just financial as reputation of the organisation is at stake that can lead to a churn in its customer base.
A large-sized organisation in India can incur an average economic loss of around $10.3 million from cyberattacks, while for a mid-sized firm, it stands at around $11,000, according to a study by Frost & Sullivan that was commissioned by Microsoft.
According to the study, cybersecurity attacks have also resulted in job losses across different functions in more than three in five organisations that have experienced an incident during the survey period.
The study titled “Understanding the Cybersecurity Threat Landscape in Asia Pacific: Securing the Modern Enterprise in a Digital World”, reveals that more than three in five organisations surveyed in India have either experienced a cybersecurity incident or are not sure if they had one as they have not performed proper forensics or data breach assessment.
The study involved a survey of 1,300 business and IT decision makers ranging from mid-sized to large organisations.
“As companies embrace the opportunities presented by cloud and mobile computing to connect with customers and optimise operations, they take on new risks,” said Keshav Dhakad, Group Head and Assistant General Counsel, Corporate, External & Legal Affairs (CELA), Microsoft India.
The losses incurred due to a cybersecurity breach include direct effect of financial losses or indirect effect in terms of opportunity cost to the organisation such as customer churn due to reputation loss. Lastly, there was the induced loss where the impact is on the broader ecosystem and economy, such as the decrease in consumer and enterprise spending.
“Although the direct losses from cybersecurity breaches are most visible, they are but just the tip of the iceberg,” said Benoy CS, Director & Business Unit Head - Digital Transformation Practice Middle East, North Africa & South Asia, Frost & Sullivan.
While the threat of cyber-attacks is ever increasing, the report also highlights that rapid advancements in technologies like AI (artificial intelligence) will act as a key equalising factor. The study reveals that more than nine in ten organisations in India have either adopted or are looking to adopt an AI approach towards boosting cybersecurity.