According to the Global Risk Survey 2023 conducted by PwC, cybersecurity issues are now the largest threat faced by Indian organizations. A global consultancy firm, PwC reported that as much as 38% of respondents from India feel highly vulnerable or extremely exposed to cyber risks.
Cyber Risks Take the Lead
The survey findings underscore the magnitude of cyber risks, with climate change and inflation ranking second and third respectively, at 37% and 36%. An alarming 35% of Indian business leaders are equally worried about digital and technology risks. This places these threats in fourth position when considering the greatest hazards faced by local organizations.
Investing in Cybersecurity and Risk Management
More than half of Indian organizations are actively investing in cybersecurity, planning to spend on cybersecurity tools (55%) and AI-related technologies (55%) within the next 1-3 years. By doing so, they align themselves with global trends of spending in these areas (51% and 49% globally).
A majority of Indian organizations, namely 71%, are leveraging cybersecurity and IT data for risk management and identifying opportunities. This is significantly higher than the global average of 61%. The use of developing technologies such as Generative Artificial Intelligence for risk management is also widespread, with 48% of enterprises deploying AI and machine learning for automated risk assessment and response.
The Legacy Technologies Challenge
Legacy technologies, which can include outdated systems and infrastructures, can expose organizations to increased security vulnerabilities. According to the survey, 42% of Indian organizations grapple with this problem, a figure that surpasses the global average of 36%.
Commitment to Building Resilience
The survey also indicated that a whopping 88% of Indian organizations have actively invested in resilience building over the past year, outstripping the global average of 77%.
The Financial Impact of Cyber Risks
Cyber risks, inclusive of malware, trojans, and spyware, pose serious threats to Indian organizations. Despite containment efforts, these risks significantly influence market perception, leading to fluctuations in stock prices and loss of trust. Firms that pay ransoms often experience a doubling in data recovery costs compared to those relying on backups.
Existing Legislation to Tackle Cyber Risks
Multiple provisions are in place to address cybersecurity issues in India. The Information Technology (IT) Act of 2000 defines activities such as hacking, denial-of-service attacks, phishing, and identity fraud as punishable offenses.
The Digital Personal Data Protection (DPDP) Act of 2023 upholds individuals rights to protect their digital personal data, imposing responsibilities on data processors.
The National Cyber Security Policy of 2013 aims to fortify information and infrastructure by enhancing threat prevention measures and response capabilities.
Lastly, the National Cyber Security Strategy of 2020 focuses on enhancing cyber awareness and safeguarding cyberspace through stringent audits.
Overall, the rise in cyber threats and the subsequent investment in resilience measures portray an alarming yet proactive response from Indian organizations. With the law aiding in strengthening digital structures, India’s fight against cybercrime is certainly noteworthy.