BENGALURU, India, March 9, 2021 /PRNewswire/
-- Infosys (NYSE: INFY), a global leader in
next-generation digital services and consulting, and Interbrand, a
global brand consultancy firm, today revealed that the potential
risk in brand value of a data breach to the world's 100 most
valuable brands could amount to as much as $223b, according to a joint cybersecurity and
brand value impact report launched today. The report, called
'Invisible Tech. Real Impact,' examines the long-term impact of
data breaches on value of the world's top brands across
sectors.
View a short video on the report HERE
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 resulting brand
value at risk in the event of a breach, using Interbrand's
proprietary brand valuation methodology. Infosys and Interbrand
found that industries such as Technology, Financial services and
Automotive might suffer a higher overall brand value at risk from
data breaches, whereas Luxury brands and Consumer Goods face
greater value at risk as a percentage of their net income.
Specifically, the report quantified the brand value risk different
industries face because of a data breach, including:
- Technology – Up to $29b brand value risk (up to 53 percent of 2020
net income)
- Financial Services – Up to $2.6b brand value risk (up to 52 percent of 2020
net income)
- Automotive – Up to $4.2b brand value risk (up to 77 percent of 2020
net income)
- Consumer Goods - Up to $5b brand value risk (up to 114 percent of 2020
net income)
- Luxury – Up to $2.4b
brand value risk (up to 115 percent of 2020 net income)
Vishal Salvi, Chief
Information Security Officer & Head Cyber Security
Practice, Infosys said, "Cybersecurity for long was
seen as a cost of doing business. However, in this digital age,
where a company's reputation is based on its ability to protect
customer data and establish digital trust, cybersecurity is
becoming a business differentiator. 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. It also reinforces the need for CISOs to engage
with the board and build a robust governance ecosystem while
employing a 'secure by design' approach to safeguard their brand
value and reputation "
Ameya Kapnadak, Chief Growth
Officer (India), Interbrand,
said, "There's a fundamental shift in how brands engage with their
customers. As the lines between the physical and virtual worlds
increasingly blur, and brands rely more and 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."
For the study, Infosys partnered with Interbrand to simulate the
value at risk for a brand in the event of a data breach.
Interbrand's global team of valuation experts estimated the impact
of a breach on a brand strength with scores from Best Global Brand
(BGB) 2020 as a benchmark. The simulation used these 'post breach'
brand strength scores to estimate the "Value at Risk" due to a
breach, on the Best Global Brands. CMOs, CISOs and other
decision-makers can leverage the methodology as a template to help
them understand similar risks they might face to their brand value
and calculate the right level of cybersecurity investment for
them.
For a full copy of the report, please click HERE
About Interbrand
At Interbrand, we believe that growth is achieved when an
organization has a clear strategy and delivers exceptional customer
experiences. We do both, through a combination of strategy,
creativity, and technology that helps drive growth for our clients'
brands and businesses. With a network of 21 offices in 16
countries, Interbrand is a global brand consultancy, and publisher
of the highly influential annual Best Global
Brands and Breakthrough Brands reports, and Webby
Award-winning brandchannel. Interbrand is part of the
Omnicom Group Inc. (NYSE:OMC) network of agencies. For more
information, please contact us, or follow Interbrand
on LinkedIn, Twitter and Facebook.
Methodology
Having pioneered brand valuation in 1988, Interbrand have a deep
understanding of the impact a strong brand has on key stakeholder
groups that influence the growth business. Interbrand was the first
company to have its methodology certified as compliant with the
requirements of ISO 10668 (requirements for monetary brand
valuation) and played a key role in the development of the standard
itself.
There are three key components to all of Interbrand's
valuations: an analysis of the financial performance of the branded
products or services, of the role the brand plays in purchase
decisions, and of the brand's competitive strength:
1. Financial Analysis
This measures the overall financial return to an organization's
investors, or its economic profit. Economic profit is the after-tax
operating profit of the brand, minus a charge for the capital used
to generate the brand's revenue and margins.
2. Role of Brand
This measures the portion of the purchase decision attributable
to the brand as opposed to other factors (for example, purchase
drivers such as price, convenience, or product features). The Role
of Brand Index (RBI) quantifies this as a percentage.
3. Brand Strength
Brand Strength measures the ability of the brand to create
loyalty and, therefore, sustainable demand and profit into the
future. Brand Strength analysis is based on an evaluation across 10
factors that Interbrand believes constitute a strong brand.
Performance in these areas is judged relative to other brands in
the industry and relative to other world-class brands. The Brand
Strength analysis delivers an insightful snapshot of the strengths
and weaknesses of the brand and is used to generate a road map of
activities to grow the brand's strength and value into the
future.
4. Value at Risk
For the purposes of this study, we estimated the Value at Risk
that the Best Global Brands might have, in the event of a data
breach. To do this we first arrived at estimates of a "post breach"
brand strength score based on the brand strength factors that the
breach might most impact – presence, affinity and trust. Using
these post-breach brand strength scores allowed us to calculate the
'post breach' brand value. Finally, comparing the lower
'post-breach' brand value to the original brand value gave us the
estimated Value at Risk.
About Infosys Ltd.
Infosys is a global leader in next-generation digital services
and consulting. We enable clients in 46 countries to navigate their
digital transformation. With four decades of experience in managing
the systems and workings of global enterprises, we expertly steer
our clients through their digital journey. We do it by enabling the
enterprise with an AI-powered core that helps prioritize the
execution of change. We also empower the business with agile
digital at scale to deliver unprecedented levels of performance and
customer delight. Our always-on learning agenda drives their
continuous improvement through building and transferring digital
skills, expertise, and ideas from our innovation ecosystem.
Visit www.infosys.com to see how Infosys (NYSE: INFY) can
help your enterprise navigate your next.
Safe harbor:
"Certain statements in this release concerning our future growth
prospects and financial expectations are forward-looking statements
intended to qualify for the 'safe harbor' under the Private
Securities Litigation Reform Act of 1995, which involve a number of
risks and uncertainties that could cause actual results to differ
materially from those in such forward-looking statements. The risks
and uncertainties relating to these statements include, but are not
limited to, risks and uncertainties regarding Covid-19 and the
effects of government and other measures seeking to contain its
spread, risks related to an economic downturn or recession in
India, the United States and other countries around
the world, changes in political, business, and economic conditions,
fluctuations in earnings, fluctuations in foreign exchange rates,
our ability to manage growth, intense competition in IT services
including those factors which may affect our cost advantage, wage
increases in India, our ability to
attract and retain highly skilled professionals, time and cost
overruns on fixed-price, fixed-time frame contracts, client
concentration, restrictions on immigration, industry segment
concentration, our ability to manage our international operations,
reduced demand for technology in our key focus areas, disruptions
in telecommunication networks or system failures, our ability to
successfully complete and integrate potential acquisitions,
liability for damages on our service contracts, the success of the
companies in which Infosys has made strategic investments,
withdrawal or expiration of governmental fiscal incentives,
political instability and regional conflicts, legal restrictions on
raising capital or acquiring companies outside India, unauthorized use of our intellectual
property and general economic conditions affecting our industry and
the outcome of pending litigation and government investigation.
Additional risks that could affect our future operating results are
more fully described in our United States Securities and Exchange
Commission filings including our Annual Report on Form 20-F for the
fiscal year ended March 31, 2020.
These filings are available at www.sec.gov. Infosys may, from
time to time, make additional written and oral forward-looking
statements, including statements contained in the Company's filings
with the Securities and Exchange Commission and our reports to
shareholders. The Company does not undertake to update any
forward-looking statements that may be made from time to time by or
on behalf of the Company unless it is required by law."
Video: https://www.youtube.com/watch?v=AEIR00-kM6M
Logo: https://mma.prnewswire.com/media/633365/Infosys_Logo.jpg