Latest News | 'Potential Risk in Brand Value Due to Data Breach Could Be USD 223 Bn for 100 Top Cos'

New Delhi, Mar 9 (PTI) The potential risk in brand value on account of a data breach could amount to as much as USD 223 billion for the world's 100 most valuable brands, a joint report by Infosys and Interbrand said.

The report 'Invisible Tech. Real Impact' examined the long-term impact of data breaches on value of the world's topbrands across sectors.

To quantify this risk, the report identified factors that were most impacted when a company suffers a data breach - presence, affinity, and trust - and simulated the resulting brand value at risk in the event of a breach.

The report found that industries such as technology, financial services and automotive may suffer a higher overall brand value at risk from data breaches, whereas luxury brands and consumer goods face greater value at risk as a percentage of their net income.

It quantified the brand value risk different industries face because of a data breach, including technology (up to USD 29 billion brand value risk), financial services (up to USD 2.6 billion), automotive (up to USD 4.2 billion), consumer goods (up to USD 5 billion) and luxury (up to USD 2.4 billion).

"Cybersecurity for long was seen as a cost of doing business. However, in this digital age, where a company's reputation is based on its ability to protect customer data and establish digital trust, cybersecurity is becoming a business differentiator," Infosys Chief Information Security Officer and Head Cyber Security Practice Vishal Salvi said.

He added that quantifying the impact of a data breach to the brand value can help businesses understand and evaluate if the cybersecurity investments they are making are proportionate to the risk they face.

"It also reinforces the need for CISOs to engage with the board and build a robust governance ecosystem while employing a 'secure by design' approach to safeguard their brand value and reputation," he said. Ameya Kapnadak, Chief Growth Officer (India) at Interbrand, said there's a fundamental shift in how brands engage with their customers.

"As the lines between the physical and virtual worlds increasingly blur, and brands rely more and more on the digital world to create unique experiences for their customers, data breaches have the potential to dent the very core of the brand's relationship with its customers. These shifts underscore the need to re-evaluate 'hygiene' aspects of customer experience, like cybersecurity," Kapnadak said.

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