Breach of trust: Cybersecurity can make or break a brand
Top brands across sectors and geographies are investing heavily in digital with an aim to improve customer experience. This endeavour necessitates collection of consumer data. In addition, it becomes necessary for brands to safeguard the data that is collected. A significant shift to digital increases the vulnerability of brands online. Vishal Salvi, chief information security officer and head of cyber security practice, Infosys, says, “A decade ago, cybersecurity spends of organisations would typically be 4-5% of the IT budget. In recent years, this has increased to 8-10%.”
Citing a major US retailer’s cyber breach in 2013 which cost $79.5 million in addition to immediate costs, Ameya Kapnadak, chief growth officer, India, Interbrand, says, “Studies demonstrate 65% consumers lose trust in a business in the event of a data breach and 85% of them don’t want to deal with that business again.” He adds: “If, by some quirk of fate, the world’s 100 most valuable brands have to...