Yet inability to quantify the business cost of cyber risks leaves most boards of directors in the dark
Dubai, UAE: Tenable®, Inc., the Cyber Exposure company, released the Measuring and Managing the Cyber Risks to Business Operations Report, an independent study conducted by Ponemon Institute. It found that 60 percent of organizations globally had suffered two or more business-disrupting cyber events — defined as cyber attacks causing data breaches or significant disruption and downtime to business operations, plant and operational equipment — in the last 24 months. Further, the vast majority of respondents (91 percent) had suffered at least one such cyber event in the same time period.
Despite this documented history of damaging attacks, the study found that the majority of organizations (54 percent) are not measuring, and therefore don’t understand, the business costs of cyber risk. The report concludes that organizations are unable to make risk-based business decisions backed by accurate and quantifiable metrics, resulting in a lack of actionable insight for the C-suite and board of directors.
Digital transformation has created a complex computing environment of Cloud, DevOps, mobility and IoT, where everything is connected as part of the new, modern attack surface. This has created a massive gap in an organization’s ability to truly understand its Cyber Exposure at any given time. The research — which surveyed 2,410 IT and infosec decision-makers in six countries — found less than one third (29 percent) of respondents reported having sufficient visibility into their attack surface (i.e. traditional IT, cloud, containers, IoT and operational technology) to effectively reduce their exposure to risk. To further complicate this lack of visibility, more than half of respondents (58 percent) said their security function lacks adequate staffing to scan for vulnerabilities in a timely manner, with only 35 percent scanning when it’s deemed necessary by an assessment of risks to sensitive data.
Together, these data points reveal that the tools and approaches organizations are using fail to provide the visibility and focus required to manage, measure and reduce cyber risk in the digital era.
Of those organizations that measure the business costs of cyber risk, 62 percent are not confident their metrics are actually accurate. Thus, decisions about the allocation of resources, investments in technologies and the prioritization of threats are being made without critical information — such as the costs of IP theft, loss of revenue or loss of productivity. Organizations admit to not using the key performance indicators (KPIs) they consider important to assessing and understanding cyber risks:
- 64 percent rated “time to assess” an essential KPI but only 49 percent actually measure it
- 70 percent rated “time to remediate” an essential KPI but only 46 percent measure it
- Only 30 percent of respondents believe their organizations can translate cyber risk KPIs into actionable steps
This lack of rigor leaves boards of directors in the dark about the true cost of cyber risks to their organizations. Without confidence in the accuracy of their measures, CISOs and other security executives are reluctant to share critical information about the business costs of cyber risks with their boards.
“In today’s digital economy, cyber risk equates to business risk. It’s shocking to learn that organizations are suffering business-impacting cyber events yet are struggling to accurately measure the resulting financial cost,” said Bob Huber, CSO, Tenable. “This study powerfully highlights that most organizations have not implemented security metrics that reflect cybersecurity’s role as a core business function. CISOs need reliable metrics to help them make educated decisions on the allocation of resources, investments in technology and the prioritization of threats.”
- The survey was completed by 2,410 IT and security professionals in the United States, United Kingdom, Germany, Australia, Mexico and Japan. All respondents have a role in the evaluation and/or management of investments in cybersecurity solutions within their organization.
- An infographic to support this release is available on request
Tenable®, Inc. is the Cyber Exposure company. Over 24,000 organizations around the globe rely on Tenable to understand and reduce cyber risk. As the creator of Nessus®, Tenable extended its expertise in vulnerabilities to deliver the world’s first platform to see and secure any digital asset on any computing platform. Tenable customers include more than 50 percent of the Fortune 500, more than 25 percent of the Global 2000 and large government agencies.
About Ponemon Institute Research:
Ponemon Institute conducts independent research on consumer trust, privacy, data protection and emerging data security technologies. Our goal is to enable organizations in both the private and public sectors to have a clearer understanding of the trends in practices, perceptions and potential threats that will affect the collection, management and safeguarding of personal and confidential information about individuals and organizations. Ponemon Institute research informs organizations on how to improve upon their data protection initiatives and enhance their brand and reputation as a trusted enterprise.