GETTING AHEAD in CYBER RISK a Differentiated Approach for Communications, Media and Technology Providers
GETTING AHEAD IN CYBER RISK A differentiated approach for Communications, Media and Technology providers KEY TAKEAWAYS Companies in the Communications, Media and Technology (CMT) industry, especially in the 1 telecommunications sector, operate across multiple technology platforms and jurisdictions, exposing them to wide-ranging cyber risks. The industry often acts as a conduit for information and transaction flows and forms a fundamental component of other key sectors, making it a particularly attractive target. Business interruptions and reputational damage are perceived to be the most critical cyber 2 loss scenarios for CMT companies and their stakeholders. A cyber incident can cause significant financial losses stemming from service disruption, as well as loss of trust due to breach of customer privacy. In the case of reputational damage, on average it is much more pronounced for the CMT industry than other industries. In the face of a cyberattack, the CMT industry is perceived to incur the highest financial cost 3 across all surveyed industries. Among cyber threats, financially-motivated ones are the biggest concern for CMT companies. As shown by results of the latest Marsh Microsoft Global Cyber Risk Perception Survey, more than 80 percent of respondents from the CMT industry expect a cyber breach to cost them more than $1 million per case, as compared to a cross-industry average of 65 percent.1 Proactive measures are needed to increase the visibility of cyber risk issues within CMT 4 companies, and cyber risk management should be made a shared responsibility across the firm. While the risks have been recognized by the industry, more can be done by CMT companies to establish and implement a holistic framework, encompassing cyber hygiene, governance, quantification of risks, and adequate board oversight.
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