In the connected and convergent world delivered by the Internet of Things (IoT), companies are increasingly vulnerable to cyberattacks. As a result, there has been a shift to focus more on the development of technologies to combat cyber threats as businesses come to grips with these new realities.
Richard Watson, EY Asia-Pacific Cybersecurity Risk Advisory Leader, shares his latest views on key trends that will drive the evolution of cybersecurity in the next year, and how the increasingly digitized and connected business landscape is responding to rising cybersecurity challenges.
EY has recently been recognized by Forrester Research as a leader in its report The Forrester Wave™: Cybersecurity Consulting Services In Asia Pacific, Q4 2019. The report assessed global cybersecurity consultancies in a 23-criterion evaluation to help security and risk professionals choose from the 10 most significant providers – of which EY was considered a leader.
The cybersecurity landscape shifts from ‘fear of breach’ to resilience-focused
Up until around 12 months ago, cybersecurity was dominated by ‘fear of breach’ – the reputational damage of a data loss event, or a breach of confidentiality. Following the large global cyber incidents there was a shift in attitude, and the principles of availability and integrity of systems and data came to the fore.
It is expected to see increased focus on cyber resilience and how the availability and integrity of systems and data underpin the digital organizations many institutions have become.
The spectre of regulation will continue to dominate
Organizations will keep a close eye on how the regulator will respond to those big cyber incidents following the go live of the General Data Protection Regulation (GDPR). Harsh punishments and penalties will prompt Asia-Pacific companies to get an understanding of their GDPR readiness posture.
China’s Cybersecurity Law comes with an overlay of a specifically Chinese nature, with implications that most Western companies would take time to be familiar with. In addition, China’s legislative and enforcement style – which is written in Chinese, principles-based and involves elements of judgment in its application – means Cybersecurity Law could be complicated for and easily misunderstood by Western companies. The Law requires far reaching change and businesses need to assess their exposure now and begin the complex transition.
Rapid 5G advancements set to play a complementary role to IoT in upping risks
5G is an attractive asset for telecom operators to offer – enterprises have started to invest in the technology. 5G will lead to a rapid increase in the number of connected devices and will lower latency, therefore augmenting the capabilities that IoT offers. As these technologies reach maturity, cyber risks become a key concern.
Solutions, ironically, also lie in new tech
Digital advancements bring increased vulnerabilities but also increased benefits: AI can be used to carry out cybersecurity tasks.
An aligned digital and cyber strategy is recommended to enable digital transformation, through:
▪ Gaining an increased understanding of the overall business landscape by monitoring and regular management of newly introduced technology, as well as the cyber-physical risks they could bring
▪ Creating therefore a safe, governed cyber environment where introduction of new technology is still possible
▪ Creating more resilient technology platforms that have the ability to predict attacks before they occur
The video game industry is gearing up for cyber risk management
The video game industry is facing more competition from new entrants. Cloud gaming and 5G technology represents opportunity for the industry as companies can harness these new technologies to edge out competitors to prevent slowing growth.
Fears have been raised about the vulnerabilities companies face when opening themselves up to such new advancements. The industry is responding in kind:
▪ There has been an increase in expenditure on boosting cybersecurity compliance, as well as in the tech infrastructure needed to support
▪ Blockchain is being utilized as a solution to encourage trust throughout the video gaming ecosystem