A study conducted by Microsoft commissioned Frost & Sullivan Company has discovered that firms operating in Singapore could have lost billions of dollars which is equal to 6% of GDP growth of the country. If figures are taken into account, the amount could mean a staggering $17.7 billion in USD in economic damage.
Furthermore, the study claims that cyber attacks have resulted in at least 6% of job losses in organizations operating across APAC (Asia-Pacific) region.
The study confirmed that some companies still do not realize the damage caused by cyber threats which could lead them to a major financial loss or even a permanent shut down.
Frost & Sullivan study says that the economic losses could have been prevented if organizations had paid greater attention to the cybersecurity gaps uncovered by the study.
The study titled “Understanding the Cybersecurity Threat Landscape in the Asia Pacific: Securing the Modern Enterprise in a Digital World” was conducted with 1300 business and IT decision makers ranging from mid-sized organizations(250 to 499 employees) to large sized organizations ( having more than 500 headcounts) across the Asia-Pacific region.
“In some cases, direct financial losses are visible, but they are just a tip of the iceberg. There are many hidden losses that we have to consider from both the indirect and induced perspectives, and the economic loss for organizations suffering from cybersecurity attacks can be often underestimated”, said Edison Yu, Vice President and Asia Pacific head of enterprise for Frost & Sullivan.
Yu added that cyber attacks and threats could hinder the future digital economy of Singapore, as it was found in the research that some respondents have put off digital transformation efforts due to the fear of cyber risks.
Using Artificial Intelligence (AI) could help take away the fear among enterprises as it can detect and act on threat vectors based on data insights. But for this trend to emerge, the government should take apt responsibility to create an efficient roadmap, to help firms tap in the benefits of AI to mitigate risks associated to cyber threats.