IT services major Infosys said on Tuesday the potential risk in brand value of a data breach to the world's 100 most valuable brands could amount to as much as 223 billion dollars.
The joint cybersecurity and brand value impact report titled 'Invisible Tech. Real Impact,' examines long-term impact of data breaches on value of the world's top brands across sectors.
To quantify this risk, Infosys and Interbrand identified brand factors most impacted when a company suffers a data breach -- presence, affinity and trust -- and simulated the resulting brand value at risk in the event of a breach.
Infosys and Interbrand found that industries like technology, financial services and automotive might suffer a higher overall brand value at risk from data breaches whereas luxury brands and consumer goods face greater value at risk as a percentage of their net income.
Vishal Salvi, Chief Information Security Officer and Head of Cyber Security Practice at Infosys, said cybersecurity for long was seen as a cost of doing business.
"However, in this digital age where a company's reputation is based on its ability to protect customer data and establish digital trust, cybersecurity is becoming a business differentiator." The report brings a novel approach to quantifying the impact of a data breach to brand value to help businesses understand and evaluate if the cybersecurity investments they are making are proportionate to the risk they face.
"It also reinforces the need for CISOs to engage with the board and build a robust governance ecosystem while employing a 'secure by design' approach to safeguard their brand value and reputation," said Salvi.
Ameya Kapnadak, Chief Growth Officer for India market at Interbrand, said there is a fundamental shift in how brands engage with their customers.
As the lines between the physical and virtual worlds increasingly blur, and brands rely more and more on the digital world to create unique experiences for their customers, data breaches have the potential to dent the very core of the brand's relationship with its customers.
"These shifts underscore the need to re-evaluate 'hygiene' aspects of customer experience like cybersecurity," said Kapnadak.