Cyber risks are skyrocketing. The latest IBM Data Breach Report revealed that an alarming 83% of organizations experienced more than one data breach during 2022. According to the 2022 Verizon Data Breach Investigations Report, the total number of ransomware attacks surged by 13%, which is a rise equal to the last five years combined. The severity of the situation continues to be evident with the public disclosure of at least 310 cyber incidents that occurred in the past three months alone, according to January, February, and March data from IT Governance. These include OpenAI’s ChatGPT, which exposed the payment-related and other sensitive information of 1.2% of its ChatGPT Plus subscribers due to a bug in an open-source library it used. Moreover, Samsung semiconductor has recorded three incidents where employees accidentally leaked company information when using ChatGPT.
The Devastating Business Impacts of a Cyber Breach
No company can afford to underestimate the long-term financial costs.
May 04, 2023
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Summary.
Cybersecurity risks are becoming more systematic and more severe. Although the short-term impacts of a cyberattack on a business are quite severe, the long-term impacts can be even more important, such as the loss of competitive advantage, reduction in credit rating, and increase in cyber insurance premiums. They should not be ignored. To address these concerns effectively, companies need to: 1) Have a cybersecurity champion on the board to help set the tone for the organization, and 2) develop a long-term cybersecurity strategy, which should be a priority for every organization.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Digital Intelligence . Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Excel in a world that's being continually transformed by technology.