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The world’s 100 most valuable brands could face potential risk to the tune of $223 billion due to a data breach, a study by Infosys and Interbrand – a brand consultancy firm – has revealed.
The companies released on Tuesday a joint cybersecurity and brand value impact study titled: ‘Invisible Tech. Real Impact’.
Evaluation method
It examined the long-term impact of data breaches on the value of the world’s top brands across sectors. To quantify this risk, Infosys and Interbrand identified the brand factors most impacted when a company suffers a data breach – presence, affinity, and trust – and simulated the results using Interbrand’s proprietary brand valuation methodology.
They found that technology, automobile and financial services industries might suffer a higher overall brand value at risk, whereas luxury brands and consumer goods face greater value at risk as a percentage of their net income.
Risk to varied sectors
The report found that tech industry faced a risk of up to $29 billion (53 percent of 2020 net income) whilefinancial Services risk up to $2.6 billion(52 percent of 2020 net income). For automotive sector, it’s up to $4.2 billion(77 percent of 2020 net income) whereas for Consumer Goods, it’s up to $5 billion (114 percent of 2020 net income). Luxury face up to $2.4 billion brand value risk (115 percent of 2020 net income).
Vishal Salvi, Chief Information Security Officer & Head Cyber Security Practice, Infosys said, “In this digital age, a company’s reputation is based on its ability to protect customer data and establish digital trust. Through this report, we bring a novel approach to quantifying the impact of a data breach to the brand value to help businesses understand and evaluate if the cybersecurity investments they are making are proportionate to the risk they face.”
Ameya Kapnadak, Chief Growth Officer (India), Interbrand, said, “As the lines between the physical and virtual worlds increasingly blur, and brands rely 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.”
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