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Understanding the Security Concerns in Digital Transformation

DigitalCIO Bureau by DigitalCIO Bureau
February 27, 2020
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With digital transformation happening at a lightning pace, it’s time to understand the security issues in digital transformation. Read on to know more…

With the recent revolution that has started in manufacturing and supply chain, we are already seeing the application of new technologies, including robots, the internet of things (IoT), artificial intelligence (AI), cloud computing, predictive analytics and blockchain rapidly changing the way many organizations design and curate experiences, manufacture, distribute and service products.

Every digital transformation projects has its own potential cybersecurity risks. Cybersecurity and privacy are prominent among those risks such as execution risk and third-party risk depending on reliable partners. While planning a digital transformation project, a big data analytics expert may offer unprecedented insights, but it also means amassing volumes of data that could be a target for the malicious hackers. Innovation on the latest mobile apps for consumers and employees also has the risk of hacking.

These innovations are causing more data to flow in more various ways i.e. inside and outside the organization, incorporating every more and more of the world we live in into a physical-to-digital-to-physical loop. Protecting that data at risk and in transit, as well as enabling investigation in the event of fraud or a security breach, are huge challenges for every organization.

The rapid adoption of digital innovations by consumers and businesses is creating both opportunities and cybersecurity risks.

Practical Risk Acceptance
The risk of digital transformation will never be zero, but they will often be less than the risks of doing nothing while competitors innovate. Business leaders understand the relationship between risk and reward, which means they will accept a reasonable level of risk in order to achieve an upside goal. The basic idea is to give them a realistic understanding of that risk, without asking them to become experts on hacking techniques or encryption protocols. What you don’t want to do is allow businesspeople to sign off on a transformation program or even insist that it move forward — because they perceive a major risk as a minor one.

When cybersecurity professionals present their risk assessment that is too technical or otherwise opaque, businesspeople are left guessing about the real magnitude of the threat, Rasmussen says. Instead, he recommends using an analysis framework which translates cyber risk into probability and financial numbers that are easier for a CEO, CFO, or board to assess.

Sophisticated Attacks
The digital transformation is changing the way businesses operate. One of the areas it’s transforming is cyber security. There are now more potential cyber threats than ever before, and attacks are becoming more sophisticated. Not only are the techniques of hackers changing rapidly, but they’re also becoming more sophisticated. Cyber criminals can use artificial intelligence and other advanced tech just like security professionals can. One type of AI-enabled attack, called a polymorphic attack, is a significant challenge. These types of attacks can morph to avoid detection by traditional security solutions.

Protecting against these threats requires a proactive, continuously integrated and automated approach to cyber security. It also requires organizations to adjust their strategies as the threat landscape continues to evolve.

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