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Tuesday, October 15, 2024

Only 2% of Businesses Have Strong Cyber Resilience Despite Breach Costs

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PwC’s survey shows organizations prioritizing cyber resilience amid rising threats and increasing investments in cybersecurity to protect data.

According to PwC’s 2025 Global Digital Trust Insights survey, released today, almost four-fifths (77%) of organizations expect their cyber budget to increase over the coming year. Organizations cite unpreparedness for an ever-expanding surface of cyber vulnerabilities.

The survey, which surveyed 4,042 business and tech executives from across 77 countries and territories, finds that only 2% of companies surveyed have implemented cyber resilience across their organizations. This is even as more than three-fifths (66%) of tech leaders rank cyber as the top risk their organization is prioritizing for mitigation over the next 12 months. This is because the average data breach cost across all respondents is US$3.3 million.

As organizations increasingly operate across digital platforms, two-thirds (67%) note GenAI has increased its attack surface over the last year.

This year’s survey findings highlight what worries organizations most is what they’re least prepared for. The top four cyber threats found most concerning — cloud-related threats (42%), hack-and-leak operations (38%), third-party breaches (35%), and attacks on connected products (33%) — are the same ones security executives feel least prepared to address.

Sean Joyce, Global Cyber & Privacy Leader, PwC US, said, “Cyber resilience is everyone’s responsibility, from the boardroom to the employee. We must hold each other accountable and address emerging risks by leveraging new technology, practicing foundational cybersecurity principles, and investing in resources to secure the organization’s future.”

Companies look to GenAI to bolster cyber resilience

As companies contend with cyber security concerns, almost four-fifths (78%) of leaders surveyed have ramped up their investment in GenAI over the last 12 months, with 72% increasing their risk management investment in AI governance. This comes as two-thirds (67%) of security leaders note GenAI has expanded the cyber-attack surface over the last year, ahead of other technologies such as cloud technology (66%), connected products (58%), operational technology (54%) and quantum computing (42%). However, while leveraging GenAI remains key to cyber resilience strategies, organizations face several challenges when incorporating the technology, notably with existing systems/processes (39%) and a lack of standardized internal policies governing its use (37%). 

Also Read: Fortress Fallacy: Why Your Network Security Needs a Zero Trust Makeover

The cyber security resilience imperative

Despite the clear threats and a lack of preparedness, the survey findings highlight organizations are nevertheless taking action. More than three-quarters (77%) expect their cyber budget to increase over the coming year, with nearly half (48%) of business leaders prioritizing data protection and trust as the top cyber investment over the next year. Tech leaders, on the other hand, note that cloud security (34%) remains their top priority. Almost one-third (30%) of organizations expect cyber budgets to increase by 6-10% next year, while one-fifth (20%) expect budgets to increase by 11% or more.

There is also a clear cyber security imperative. Organizations cite investment in cybersecurity as a key differentiator for competitive advantage, with 57% citing customer trust and 49% citing brand integrity and loyalty as primary drivers for such investment. In the backdrop, cyber regulations are also driving investment – with 96% reporting such regulations to have increased their cyber investment in the last 12 months.

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