To get a better understanding on how robust cybersecurity benefits the companies, one can first think of the opposite case: what if the companies have essentially zero defense against cyberattacks? To that end, the next section focuses on the three dimensions of disruption. The expenditures are meant to mitigate the negative effect of disruption due to cyberattacks, aiming at one or more of the three dimensions of disruption, namely, (i) the probability of disruption, (ii) the financial impact of disruption, and (iii) the time required to uncover security breaches or attacks. Security investment is increasing, with IT security budgets reaching up to 15% of the total IT spending, which is five percent higher than reported in 2020. Luckily, companies are responding accordingly. According to Accenture’s cybersecurity report, the average number of cyberattacks per company has increased by 31% since 2020. Global cybercrime was estimated to cost approximately 6 trillion US dollars in 2021 2, which is equivalent to a shocking number of 190,000 US dollars per second. A premeditated attack on specific targets, such as the electricity grid, could create a domino effect that results in disruptions and financial losses beyond any firm’s wild imaginations. Indeed, increased digitalization and reliance on cyber-devices expose firms to cyberattack risks. list cyberattacks, faulty data, safety regulations, and privacy issues as the primary risks associated with these technologies. However, such advancement is not without pitfalls. Thanks to the advancement of industry 4.0 technologies 1, the trend is only growing stronger. Modern supply chains are becoming more digitalized and reliant on real-time communication of numerous devices such as sensors, robotics, and drones. Reality: Resilience is strategic. - Harvard Business Review
Myth: Resilience is mainly an operational consideration.
Indian Institute of Management, Visakhapatnam
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