Data breach could put at risk up to $223 billion of brand value of the top 100 brands of the world, as per a joint cybersecurity and brand value impact report by Infosys and global brand consultancy firm Interbrand.
The report, called 'Invisible Tech. Real Impact', examined the long-term impact of data breaches on value of the world's top brands across sectors.
"To quantify this risk, Infosys and Interbrand identified the brand factors most impacted when a company suffers a data breach - presence, affinity, and trust - and simulated the resulting brand value at risk in the event of a breach, using Interbrand's proprietary brand valuation methodology," the companies said in a joint release.
While a data breach could put up to $29 billion of brand value at risk for technology industry, the corresponding number was at $4.2 billion for automotive industry. Luxury brands and consumer goods face greater value at risk as a percentage of their net income, with 115 per cent of 2020 net income at risk for luxury brands and 114 per cent for consumer goods, it said.
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Cybersecurity for long was seen as a cost of doing business. However, in this digital age, where a company's reputation is based on its ability to protect customer data and establish digital trust, cybersecurity is becoming a business differentiator, said Vishal Salvi, Chief Information Security Officer (CISO) & Head Cyber Security Practice, Infosys.
"Through this report, we bring a novel approach to quantifying the impact of a data breach to the brand value to help businesses understand and evaluate if the cybersecurity investments they are making are proportionate to the risk they face. It also reinforces the need for CISOs to engage with the board and build a robust governance ecosystem while employing a 'secure by design' approach to safeguard their brand value and reputation," Salvi added.
Ameya Kapnadak, Interbrand's Chief Growth Officer for India, said that as the lines between the physical and virtual world increasingly blurs, and brands rely more and more on digital world to create unique experiences for their customers, data breaches have the potential to dent the very core of the brand's relationship with its customers.
"These shifts underscore the need to re-evaluate 'hygiene' aspects of customer experience, like cybersecurity," Kapnadak said.
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