Cyberattacks could cost a large healthcare organisation US$23.3 mln in Asia Pacific
KUALA LUMPUR: A Frost & Sullivan study commissioned by Microsoft found that a cyberattack incident can cost a large healthcare organisation in Asia Pacific an average of US$23.3 million in economic loss.
For mid-sized healthcare organisations, the average economic loss was US$17,000. The study further revealed the highest economic impact of cybercrime was loss of customers and three out of five (60 per cent) cybersecurity attacks against healthcare organisations over the last 12 months have resulted in job losses across different functions.
In a joint statement, they said, while the impact of data vulnerabilities and breaches can be costly and damaging to both healthcare organisations and their consumers, the study uncovered that almost half (45) of healthcare organisations in Asia Pacific had either experienced a security incident or were not sure if they had had a security incident as they had not performed proper forensics or data breach assessment.
“With more and more healthcare organisations in Asia Pacific moving beyond digitisation into transformation and rallying with innovation, building a strong foundation with security and compliance has become critical,” said Frost & Sullivan, Cyber Security Industry principal Kenny Yeo.
“Embedding security and privacy into all aspects of digital interactions is not an option anymore – it needs to be mandated, and even more so for healthcare organisations as they handle sensitive and confidential data,”
The study further revealed that instead of accelerating digital transformation to bolster their cybersecurity strategy to defend against future cyberattacks, more than three in five (65 per cent) healthcare organisations across Asia Pacific had actually delayed the progress of digital transformation projects due to the fear of cyberattacks.
Delaying digital transformation not only limits the healthcare organisations ability to reduce attack surface against multiple attacks but also prevents them from leveraging advanced technologies, such as artificial intelligence (AI), to detect and protect against sophisticated cyberattacks.
Furthermore, digital transformation delays also hinder an organisations’ ability to better engage with patients, empower care teams, optimise clinical and operational effectiveness, and transform the care continuum.
These findings are part of ‘Understanding the Cybersecurity Threat Landscape in Asia Pacific: Securing the Modern Enterprise in a Digital World’ study launched in May 2018 . The findings aim to provide business and IT decision makers in the healthcare sector with insights on the economic cost of cyberattacks and to help to identify any gaps in their cybersecurity strategies.
The initial study involved a survey of 1,300 business and IT decision makers ranging from mid-sized organisations (250 to 499 employees) to largesized organisations (more than 500 employees), of which 11 per cent belong to the healthcare industry.
“Innovative technologies are dramatically shifting the way healthcare organisations can become more efficient, effective, and productive. However, as technology advances at a fast pace, so do cyberthreats,” said Keren Priyadarshini, Regional Business Lead, Worldwide Health, Microsoft Asia.
“While Healthcare organisations in Asia Pacific are committed to the digital transformation of their business, it is as critical for them to be prepared to deal with cy ber security threats that are growing more sophisticated and a regulatory environment that is getting more stringent.”
“With cybercriminals increasingly targeting health organisations, keeping patient information and other sensitive data secure while preserving privacy, maintaining the data’s confidentiality, integrity, and availability should be a key priority for healthcare organisations,” added Keren.