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Cybersecurity concerns delay digital transformation progress for APAC orgs

Wednesday 16 January 2019 00:35 CET | News

Three out of five retails in Asia Pacific have been slowing down the progress of digital transformation projects due to the fear of cyberattacks, according to a Frost & Sullivan study.

Cybersecurity concerns among retail organizations are well-established as a cyberattack can cost a large retail organization an average of USD 18.7 million in direct and indirect economic loss, the study commissioned by Microsoft continued. Customer churn is the largest economic consequence of a cyberattack for retail organizations resulting in USD 16.9 million of indirect cost.

The study further revealed that almost three out of four (73%) cybersecurity attacks against retail organizations over the last 12 months have resulted in job losses across different functions.

According to the study there are two kinds of losses which could result from a cybersecurity breach:

  • Direct: Financial losses associated with a cybersecurity incident – this includes loss of productivity, fines, remediation cost, etc; and

  • Indirect: The opportunity cost to the organization such as customer churn due to reputational damage.

The initial study involved a survey of 1,300 business and IT decision makers ranging from mid-sized organizations (250 to 499 employees) to large-sized organizations (>than 500 employees), and 10% of these respondents are from the retail industry.


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Keywords: cyber attacks, cybersecurity, Asia, APAC, financial losses, retail
Categories:
Countries: World