A report from Accenture says that companies globally could incur $5.2 trillion in additional costs and lost revenue over the next five years due to cyberattacks, as dependency on complex internet-enabled business models outpaces the ability to introduce adequate safeguards that protect critical assets.
The high-tech industry faces the highest risk with more than $753 billion hanging in the balance, followed by the life sciences and automotive industries with $642 billion and $505 billion at risk, respectively.
Accenture Research surveyed 1,711 C-level executives across 13 countries including India, the UK and the US. The average cost of cybercrime was calculated as a percentage of revenue for each industry, including the cost of facing a large cyberattack from analysis of 460 major incidents.
The cost of cybercrime includes both the cost organisations incur when responding to cybercrime incidents as well as revenue losses.
Based on a survey of more than 100 respondents from large enterprises in India, the report explores the complexities of the internet-related challenges facing business and outlines imperatives for the CEO’s evolving role in technology, business architecture and governance.
According to the research, 77% of Indian respondents believe that the advancement of the digital economy will be severely hindered unless there is dramatic improvement to internet security, and more than half (59%) of respondents said they are concerned that the internet is getting increasingly unstable from a cybersecurity standpoint and they are unsure how to react.
At the same time, 64% of Indian respondents believe that addressing cybersecurity challenges will require an organised group effort, as no single organisation can solve the challenge on its own.
“Internet security is lagging behind the sophistication of cybercriminals, leading to an erosion of trust in the digital economy. Businesses need to drive industry-wide collaboration to improve governance; fine-tune their own business architecture including internal and external processes; and embrace technologies that enhance digital safety,” said Anindya Basu, Geographic Unit and Country Senior Managing Director, Accenture in India.
“It’s a complex problem to solve, but inaction is not an option. Lack of trust can weigh heavily on the bottom line,” he added.