KPMG’s Survey Reveals US Firms Are Not Cushioned Against Cyber Risk With Cyber Attacks
Most company boards lack the skills required to deal with cyber threats, which have been on the rise in recent times. A study by KPMG has shown that four out of five respondents think they might move to blacklist impacted businesses. Investors are willing to put their money in companies that have shown capability to deal with digital threats and keep them at bay.
KPMG’s survey captured views from 133 institutional investors who run about $3 trillion worth of assets. The survey also revealed that just about 43% of investors are satisfied that boards of the companies in which they have investment are capable of handling digital threats thrown at them. The same percentage of investors also believes that the boards of their companies have the necessary skills to manage innovation.
However, an increasing number of investors are wary about putting their money in companies that have had their sensitive information breached. Investors believe that hacking can have material adverse impact on a company’s value, which is why it is a key consideration when making an investment decision.
Hackers target U.S. corporations
According KPMG, issues of cyberattack are gaining popularity among global investors in the wake of a series of high-profile attacks on companies such as Sony Corp (ADR) (NYSE:SNE), Target Corporation (NYSE:TGT) and Home Deport Inc (NYSE:HD). International Business Machines Corp. (NYSE:IBM) also recently raised alarm about some cyber criminals using a combination of techniques such as tainted emails, phone calls and malware to defraud U.S. companies. Some small and midsize U.S. companies have lost over $1 million through such schemes, IBM said.
The increase in digital threats is part of the reason U.S. authorities are pushing for sanctions that are expected to help with battling cyber attacks of the U.S. corporations.
Cyberattacks on companies are both costly to address in terms of money required to restore systems and disruption of operation.
Enhancing digital defense
There is a growing need for company executives to be more proactive in addressing cyber threats. One of the things that boards are expected to do to keep hackers at bay is bolstering their cyber capabilities.
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