Dollars & Cents

In today's increasingly digital world, per the WEF some 60% of GDP comes from Digital assets, the risks associated with cyber attacks are growing. As more and more financial transactions and sensitive data are hosted in the digital world, organizations are increasingly vulnerable to attacks, or simply misconfigurations allowing public assess. While the consequences of an attack, or incident, can be far-reaching, one of the key concerns for organizations is the financial impact. One of the major financial impacts of an incident is the cost of recovering from it. This can include the cost of hiring outside experts to help with the response and cleanup, as well as the cost of lost productivity and revenue while the organization is recovering. In many cases, organizations may also need to offer credit monitoring and other services to customers whose personal information has been exposed in the attack. In addition to the direct costs associated with recover, organizations may also face financial penalties and regulatory fines. For example, if an organization fails to adequately protect customer data, it may be subject to fines from regulatory bodies such as the SEC (official SEC Cyber rule updates pending June 2023). This can be a significant financial burden and can damage the organization's reputation to include trust among its customers and shareholders. Furthermore, a cyber incident can also have long-term financial consequences. If an organization's reputation is damaged as a result of an attack, it may struggle to attract new customers, investors, or retain existing ones. This can lead to a decline in revenue and profitability, which can have a lasting impact on the organization's financial health. According to McKinsey 60% of SMB's do not survive after a cyber attack. In general, the true cost of an attack is not realized until years later. Overall, the financial impacts of a cyber attack can be significant. Organizations need to be aware of the risks and take steps to protect themselves from attacks. Your business operating model must include a proper Cyber Risk Strategy, just like your financial side of the business. This can involve implementing appropriate security controls, writing down processes, as well as defining metrics and KPI's to regularly monitoring and review along with presenting status to the Board and Executives. By taking these steps, organizations can reduce their risk to an attack and minimize the potential financial consequences..after all, without solid financial you have no business.