CYBER RISK IN THE CONSUMER BUSINESS SECTOR

AFEW weeks ago, businesses once again woke up to the reality of a cyber attack when the ransomware Petya spread from the Ukraine to the rest of Europe, the US, and even India, crippling countries.

One of the victims of the attack is a Fortune 500 food company that saw its manufacturing facilities in Australia and New Zealand grind to a halt due to infected computers that were located half a world away. Earlier this month, that company announced it was expecting its revenue growth to contract by an estimated 3 percent all due to the attack.

This is a stark picture of just how potent and expansive cyber attacks have gotten in such a short span of time. Companies in the consumer business sector may be at heightened risk precisely because of what they are doing to stay competitive: investing in emerging technologies.

Widespread initiatives around consumer analytics, cloud integration, connected devices, and digital payment technology have been helping businesses in the consumer products, retail, restaurant, and agribusiness sectors meet consumer expectations and differentiate their products and services. But with this growing technology footprint comes more complex cyber risks.

Center for Industry Insights looks at the current challenges facing these companies based on the insights and opinions of over 400 - tives in these sectors. The research consumer business companies should focus on to better manage their cyber risks.

Executive-level engagement

of cyber attacks, many organizations still have a fragmented approach to managing cyber risks. Since C-suite executives have the authority to direct investments and priorities, they should consider gaining a better understanding of the cyber risk landscape and taking a more proactive role in bridging the gap between perception and reality when it comes to their organization’s cyber prepapredness. At their level, they can establish the right balance between investing in advanced technologies and establishing systems or protocols that will allow them to manage any new risks these new technologies may bring.

Among the consumer business its report, 25 percent said they lacked cyber funding needed for them to effectively respond to cyber incidents, while 21 percent admitted their organization fell roles, and responsibilities when it came to cybersecurity. And yet 76 percent claimed to be adequately prepared for cyber incidents.

Full executive commitment is needed to close that gap, especially since most, if not all, departments are affected by cybersecurity issues.

Customer trust

Organizations in the consumer business sector have a wealth of customer data to mine, and they now have so many options technology-wise to do so: They are using big data analytics to personalize their offerings and drive customer loyalty; they are using connected products to minimize offering mobile functionality to create seamless in-store and online buying experiences.

All this technology requires greater aggregation and storage of customer information across an increasing number of touchpoints, putting these organizations under immense pressure to keep this data secure. But this also presents an opportunity to rise above the competition.

- sumer privacy revealed that 81 percent of consumers felt they have lost control over how their personal information is collected and used by companies. Brands that invest in cybersecurity capabilities to protect consumer data and build trust stand to gain in this atmosphere of uncertainty.

Brands can communicate the steps taken to keep customer information secure and educate consumers on cybersecurity as it relates to the use of their products or services to establish a reputation for putting a premium on security. They can also make sure that every initiative to develop a new product includes efforts to embed security to protect consumers.

Connected products

Last year, a leading toy manufacturer