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A recent study suggests that a good number of Indian organizations are showing a lackadaisical attitude towards data security norms and initiatives. Whether it is personal identifiable data or electronic health records, most of the organizations are lacking cyber risk management strategies that ensure data security. About 60% of Indian organizations surveyed are not sure of Data Security according to a survey which was highlighted recently in the Economic Times as well.
Why are Enterprises at Risk?
In the last couple of years, organizations shuffled their policies from ‘work from office’ to ‘work from home’ and then ‘work from anywhere’. These frequent changes in the operational policies have put IT risk management on toes. What is worse is that many organizations are not even having a mechanism in place to manage and monitor end-user activities.
In spite of the Government of India’s National Cybersecurity Policy, and new announcements from the department of C&IS (Cyber & Information Security), many organizations still lack dedicated team, policy and experts to manage and protect data. Moreover, not even 10% of organizations have opted for cyber insurance – shocking given that adequate and relevant cyber insurance policy is the ‘need of the hour’ globally. After all, Cyber Insurance premium is inversely proportional to an organization’s cyber readiness.
What could be the consequences?
There could be numerous destructive consequences for poor or inadequate cybersecurity preparedness.
Data Breach: There are uncountable ways through which confidential business data could be breached, and once breached, the victim might face financial loss, non-compliance penalties, legal actions, loss of business contracts and what not! And as per the report of ‘Business Today’, India ranks third in global data breaches in 2021 alone. So, it is prime time for Indian organizations to rethink their cybersecurity strategies.
Non-compliance penalties: A data breach or any other cyber incident could inflict hefty penalties if organizations fail to comply with global or regional compliance standards. It not just leads to financial stress but also maligns the reputation and brand equity.
Hindrance in Business Continuity: If IT risk management strategies are not up to the desired standards, then organizations can definitely be at the risk of losing business credibility. As day-to-day IT operations and administrative tasks are directly tied to how efficiently an organization controls and monitors users and third-party actions, any carelessness here could impact the business continuity. A single cyber incident could temporarily (or maybe permanently) affect business continuity of the victim, and eventually it might translate into irreparable loss.
The Bottom Line
To implement a robust IT security policy along with cyber insurance is essential to protect data, and prevent losses arising from cyber threats. In addition to ensuring reliable security posture, IT security policy also helps to comply with regulations.
