INVISIBLE TECHREAL IMPACT.
The Industry View.

The industry viewpoint

Invisible tech. Real impact.

1Financial Services
3000

2500

Potential Value at Risk to the Best Global Financial Brands
2655
Range of potential Value at Risk ($m)

2000

Potential Value at Risk as a percentage of net income

2055
1677

1500
1409

1283

1000

500

52%
742

31%
658

19%
0

Investment
Banks

31%

694
479

369

Insurance
Service Providers

Credit/Debit Card
Service Providers

35%

Digital Payment
Service Provider

Retail Banks

The global financial sector has beena primary target for cyberattacksbecause of the tremendous value ofthe information to which theseorganizations often have access.

In a survey by Clearswift, an
information security firm, the leading
cause of most incidents was theemployees’ failure to follow thesecurity protocol.

damage to a financial services
brand. In fact, the cumulative value
at risk due to a cybersecurity breachfor financial services brands can beas high as 2.6$b.

Financial institutions have loads of
PII – personal identification
information, including
cryptocurrency portfolios.
Cybercriminals often perform
attacks like phishing to compromise
account credentials and gain
unauthorized access.

Another reason, according to thesame study, was the introduction of
BYOD (bring your device) which
contributed to 32% of the attacks,
allowing file and image downloads
which contributed to 25% of them,and sharing of data by the employees
unintentionally which contributed to
24% of the attacks1.

Traditional bank brands that handle
large amounts of customers’ wealthmight see up to 16-17% of theirbrand value at risk. For insurance
brands, this value at risk issomewhat lower at 11-12%. For adigital-first brand, the value at risk
might be as high as 52% of their net
income, even though it represents
11-12% of the overall brand value.
With “digital-first” quickly becoming
the norm for even traditional
financial services brands, thequantum of this value at risk canonly go higher.

In fact, according to the Boston
Consulting Group, financial services
firms are hit by cyberattacks astaggering 300 times more
frequently than businesses in otherindustries.

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Security is at the core of any financial
services brand’s proposition. It istherefore, no surprise that thesebrands have a very high value at risk.
Indeed, monetary loss in addition to aloss in trust can cause irreparable

1

The industry viewpoint

Invisible tech. Real impact.

2
Technology
35000
30000

204%

3200%

Potential Value at Risk to the Best Global Tech Brands

29065

Range of potential Value at Risk ($m)

25000
23616

Potential Value at Risk as a percentage of net income

20000
16399

15000
53%
10000

42%

10304

5000

5842

6849

29%
5418
1788

0

Computer & Mobile,Hardware/ Software

Hyper-scalers

The recent times have seen anumber of new technologies
become a part of our lives andbusinesses – 5G and IoT to Artificial
Intelligence, Cloud technology, andMachine Learning.
While these technologies create
efficiencies, save time, reduce costs,
they have also led to an increase in
the amount of data we create andshare online. New technologies
mean vulnerabilities are lesser
known and easier to exploit.
In fact, in a recent survey byRaconteur, 94% of the telecom
operators and industry experts
agreed that security challenges wouldescalate with the advent of5G technologies2.

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Enterprise
SoftwareMobile & Electronics

It is no wonder then, that theabsolute Value at Risk for thetechnology brands is the highest
across industries. In fact, thecumulative value at risk that techbrands have in the event of a breach
could be as high as 29$b. This
represents up to 53% of their total
cumulative brand value.
This is of course, commensuratewith the overall value of technology
brands. But more importantly, it isreflective of the value thattechnology (and, by extension,technology brands) play in our lives.
Whether it is hailing a cab, making
an appointment at the dentist,paying bills or transferring money –technology is at the center of mostof our tasks and daily chores. The

23%
4202
951

758
526

SocialNetworking

Video
Communications

corollary is that we willingly sharelarge amounts of personal data withthese brands. The value at risk then,is also reflective of the importanceof safeguarding this personal
information.
As tech plays a deeper role in ourlives (also credibly offering financial
products now), issues like security
and privacy are expected to become
even more important in driving
brand choice.

2The industry viewpoint

Invisible tech. Real impact.

3Consumer Goods

6000

Potential Value at Risk to the Best Global Consumer Brands
114%

5000

4892

Range of potential Value at Risk ($m)

95%

4000

Potential Value at Risk as a percentage of net income

3000

2000
31%
1000
492

0Beverages

While most consumer productbrands still operate in the physicalrealm, they are also highly
dependent on manufacturing. And
that is where the risk to thesebrands emanates from.
In many – if not most – cases, themanufacturing facilities can notafford to be down for extended
periods of time. Cybercriminals takeadvantage of this fact and target
these companies with ransomware
attacks.
But manufacturing facilities are only
one part of the story. Most
consumer product brands also

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36%

1109

1216

218

457

292

Baby Products

Personal Care

Foods

depend on a complex and highlyinter-connected supply chain thathas a web of suppliers, productionlines, multinational sites, andlogistics. With the increasing
complexity, comes increased
vulnerability to attacks.
According to Darktrace, a leading
cybersecurity company,
cyberattacks against manufacturers
increased seven times between
January and April 2020. 26% percentof companies Darktrace surveyed
didn’t have a division overseeing
security at factory management
systems3.

1095

For consumer product brands, thistranslates into a potential value atrisk of up to 4.3$b. In some cases,
this might be as high as 114% of the
net income of the brand.
As these brands increasingly adopt
digital means of engaging with theirconsumers and creating personalized
experiences for them, this potential
value at risk might only go higher.

3The industry viewpoint

Invisible tech. Real impact.

4

Since the large majority of
automotive brands still operate in
the “real” world, one would assume
that these brands are relatively
lower at risk.
That might be partly true, since therisk to ‘traditional’ auto brands mightcome primarily from reputationalrisk. In percentage terms, this mighttranslate to 8-9% of their total brandvalue.

Automotive

However, the automotive industry ischanging at a blazingly fast pace.
Indeed, much of the innovation in
the industry is driven by software.
Whether it is on-board telematics,
connected cars or fully autonomous
cars, the world of auto istransforming into a world ofmobility. Each of these innovations
bring with them, an increased risk ofa breach.

As traditional auto shifts to “mobilitysolutions”, digital is expected tobecome increasingly more
important to their experience. With
this, the value at risk even for‘traditional brands’ can only go up.

815%

4500
4000

Of course, the car itself is just one
element that is at risk, and car andpassenger safety are of prime
importance to focus on, in the eventof a breach. However, the breachcan potentially affect the larger
ecosystem – from disrupting
factories to financing operations, toeven loss of customer data. A leading
global automaker for example,experienced a cyber attack in June 2020.
The company confirmed that work at theUK plant had been halted alongside asuspension of other operations inNorth America, Turkey, Italy and Japan4.

Potential Value at Risk to the Best Global Auto Brands

4202

Range of potential Value at Risk ($m)

3803

3500

Potential Value at Risk as a percentage of net income
3000

3098

2500

57%
45%

1500
1000

2480

63%

2000

32%

1266

35%

1136

500
308

245

231

Japanese Auto
BrandsGerman Auto
Brands

Korean Auto
Brands0

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406

444

American Auto
Brand

Italian Performance
Brand

72

ElectricMobility Brand

4

The industry viewpoint

Invisible tech. Real impact.

5MediaMedia as an industry is also
undergoing fundamental changes in
the way the consumer interacts withit. Indeed, as digital and online
become the primary channels ofmedia consumption, the exposure
to cyber threats increases manifold.
What makes online media brands
especially vulnerable is the large
number of consumers that theyinteract with. This makes them apotential entry point for launchingattacks onto individual customers.
This of course, is in addition to therisk that these brands inherently
face in terms of disruption of service(and the resultant dent in customer
experience) and the risk ofcompromising customer data.

Potential Value at Risk to the Best Global Media Brands
Range of potential Value at Risk ($m)

400%3000316425002339

2000
62%

1500
1248

1000

1149

29%

500

0

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Potential Value at Risk as a percentage of net income

879

764

GlobalEntertainmentBrand

7%

415

400

VideoSharing
Platform

OTTContent
Platform

Audio
Streaming
Platform
5

The industry viewpoint

Invisible tech. Real impact.

6
Business Services
Potential Value at Risk to the Best Global Business Services Brands
Range of potential Value at Risk ($m)

Potential Value at Risk as a percentage of net income

4000
3500

3507

111%

3000
2732

2500

2464

2000
63%

1500
1000
500
01399

1236

37%
472

Software& Services24%

382

NetworkingService

Business services handle a vast
amount of corporate data, which isone of the primary sources of risk forthese brands. The cumulative value
at risk for these brands could be as
high as 3.5$b. Expressed as apercentage of net income, the value
at risk could be as high as 111% insome cases.
The changing nature of worklife in a
post-pandemic world presents
newer complications. WFH became
the norm during the pandemic andchances are, it will still dominate alarge part of our working lives in theyears to come. That in turn implies
that organizations provide theiremployees with resources that ensure

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661

Enterprise
Software

Cloud-based
CRM Services

they remain productive –and connected.
A survey conducted byMalwarebytes, a cybersecurity firm
concluded that since the start of thepandemic, remote workers had
caused a breach in 20% of theorganizations5. The same survey
found that business email
compromise and a quick shift tocloud services in response to thepandemic, contributed tothe emerging issue.
For business services brands, thisdirectly impacts the reputation ofthe brand, and ultimately, theirbrand value at risk.

6The industry viewpoint

Invisible tech. Real impact.

7Luxury
Potential Value at Risk to the Best Global Luxury Brands
Range of potential Value at Risk ($m)

Potential Value at Risk as a percentage of net income

2500
2363
2000

116%
92%

1500

1000

78%

60%

1044

500

0463

402

10288

176

84

French Luxury
Brands

Italian Luxury
BrandsAmericanLuxury Brands

BritishLuxury Brands

Luxury as a category relies on
creating an exclusive, “otherworldly”
experience for their customers.
These experiences are still primarily
delivered in the physical world,
making the value at risk relatively
lower in percentage terms.
In absolute terms, however, thesebrands still have up to 2.4$b at risk.
This is largely due to the sheer valueof luxury as a category, thanks totheir highly premium offering.
There is of course, another aspect ofrisk that luxury brands face – theloss of reputation and the resultant
loss in brand value. Luxury brands
have a clientele that is largely

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comprised of high net worthindividuals, and a breach in theirsystems can put these individuals atrisk. In April 2018, it was announced
that the JokerStash hacking group,also known as Fin7, walked off withan astounding 5 million credit anddebit card numbers from Saks Fifth
Avenue, Saks Off 5th, and
Lord & Taylor. It was also one of
the more significant credit card
heists in history6.
The other source of reputational risk
is spoofing. Criminals use variants ofa luxury brand’s name to create fakeURLs that lure shoppers withastounding ‘offers’. The fake sitesthen steal money from the clients.

For luxury brands, this translates
into an impact on both, online
commerce as well as reputation.
In fact, it is estimated that thespoofing industry could be as big as
460$b globally. For comparison, thevalue of of the online luxury goods
market is estimated to be 264$b7.
As luxury brands target a younger
customer set, digital and online
interfaces would be increasingly
more important in creating thatunique experience. That in turntranslates into higher value at risk in
the future.

7The industry viewpoint

Invisible tech. Real impact.

Contributors
Akifumi Ito

Declan O’Callaghan

Megan Skeats

Ameya Kapnadak

Francisco Castanos

Meike Papenfuss

Apeksha Lohia

Gaia Pedinelli

Michael Kim

Armen Soorenian

Hiromitsu Hatakeyama

Mike Rocha

Arnita Chakravorty

Isabel Mossato

Mythreya Reddy Kota

Arsene Oka

Jay Myers

Patrick Fuller

Ashish Mishra

Jennifer Zuo

Patrick Lopez

Ashmita Kannan

Jordan Siff

Philip Bae

Atsuko Sakamoto

Josh Ezickson

Rahul Bansal

Balaji Sampath

Jungwon You

Rodrigo Marques

Beatriz Diego

Kartik Mani

Sachin Mistry

Bosco Torres

Kayoko Kurashige

Silvia Venturini

Calin Hertioga

Lajja Marjadi

Steven Lee

Charlie Sturr

Lea Nolting

Sumit Virmani

Chris Kwon

Magnus Marwege

Valentina Suligoj

Constanza Gabelich

Mariana Sun

Vanessa Esquivel

Cristobal Pohle Vazquez

Matteo Corbellino

Vishal Salvi

References
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2.
3.
4.
5.
6.
7.

Clearswift; https://www.clearswift.com/about-us/pr/press-releases/70-percent-companies-suffered-cyber-security-incident-in-last-12-months
Raconteur; https://www.raconteur.net/technology/5g/5g-security/
Tech Republic; https://www.techrepublic.com/article/top-5-business-sectors-targeted-by-ransomware/
BBC; https://www.bbc.com/news/technology-52982427
ZDNet; https://www.zdnet.com/article/working-from-home-trend-causes-surge-in-cybersecurity-costs-security-breaches/
CPO Magazine; https://www.cpomagazine.com/cyber-security/asus-supply-chain-attack-highlights-new-security-vulnerability-for-tech-giants/
TMC Net; https://www.tmcnet.com/topics/articles/2018/05/20/438191-luxury-brands-cyber-security-a-big-deal.htm

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