Cybersecurity appears as a new priority in financial reporting

Increasingly, corporate financial reporting has used the word “cybersecurity”. The conclusion is from a study by data analysis firm GlobalData. In the first half of this year, use of the term in these documents has increased by 33 percent — clear evidence that it has become a corporate priority in recent months.

And that’s not the only technology-related term that has gained ground in financial reporting: words like “cloud” and “big data” are also being used more often — which also reflect the rise of teleworking, digital commerce and online transactions. “The increasing incidence of data breaches leads to the use of the terms data, cloud and network security in 2021 financial reports,” says Rinaldo Pereira, business analyst at GlobalData.

In 2020, allusions to cybersecurity-related risk grew 30% compared to 2019. “The announcement of a Global Cybersecurity Fund by the World Bank in August should further increase discussions on safer digital transactions, mergers, acquisitions and investments in amidst the increasing complexity of cyberattacks.”

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According to Pereira, words like malware, ransomware and breach have also appeared frequently in financial reports in 2021. The terms started popping up in documents in 2019 — when attacks on Facebook, Capital One and First American occurred.

The use of these words is natural at a time when companies invest more in cybersecurity to prevent future attacks. “There is an escalating risk of ransomware and malware attacks due to extended telecommuting and the rise of digital customer channels.”

Businesses seem to be looking for cybersecurity services while worrying about the risks of large-scale intrusions. The increasing complexity of attacks and breaches is favorable for the digital defense industry from a business perspective. In the coming months, discussions about insurance against these offensives should increase.

Source: ZDNet

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