Globally, cyber incidents are rapidly increasing in severity and volume as businesses adopt digitization and hybrid work cultures. It is estimated that at the current rate of growth, annual damages caused by such incidents by 2025 could be worth $10.5 trillion, which is nearly thrice the current GDP of a country like India ($3.34 trillion).
Given the challenges posed by cyber risks to businesses, leaders are increasing investments in acquiring robust cybersecurity capabilities. The cybersecurity landscape is also evolving as organizations constantly re-evaluate their security strategies to stay ahead of adversaries. As we move into 2023, many cybersecurity trends will continue to gain prominence while new ones emerge.
Here are some top trends that will define the opportunities and challenges in cybersecurity in 2023.
Spending on cybersecurity will increase.
Cybersecurity concerns moved from the confines of IT rooms to corporate boardrooms, increasing cybersecurity spending. In 2021, organizations spent around $150 billion globally on cybersecurity. In addition, Gartner predicts that spending on information security and risk management will grow to over $188 billion in 2023.
Also Read: Malaysia Plans To Amend Act 588 To Address “Unethical Journalism
AI for cybersecurity will grow
The growing number and complexity of cyber incidents make it impossible for human experts to handle them independently. As a result, organizations are turning to Artificial Intelligence (AI) for help. AI is considered more effective in thwarting cyber incidents by monitoring large amounts of moving data in real-time.
According to IBM, companies with AI and automation capabilities can identify data breaches faster and save an average of $3 million. In 2023, we can expect more companies to invest in AI-powered cybersecurity products, which are predicted to be worth $46.3 billion by 2027.
Cybersecurity will become a leadership issue
Cyber risks emerged as the most significant issue in realizing business goals, thus making cybersecurity a pressing challenge for leaders. It is no longer the responsibility of a particular department or a group of people in an organization.
More companies now see cybersecurity as a business risk rather than a solely technical IT problem. Therefore, a shift in formal accountability for treating cyber incidents is expected.
According to Gartner, 50% of C-level executives are expected to have performance requirements related to risk built into their employment contracts by 2026, while 70% of CEOs are expected to mandate a culture of organizational resilience to survive such events.
Cloud security to be in focus
As businesses increasingly move to the cloud to unlock new growth opportunities, cloud security will become more crucial than ever. Large companies are already investing in cloud security to ensure safety and seamlessness across their operations. The revenue of the cloud security sub-segment is projected to reach $1.92 billion in 2023, while the average spend per employee is likely to reach $92.78 this year.
The ransomware ecosystem will evolve
As businesses struggled to adapt to the new work-from-home issues, the past two years saw an increase in ransomware concerns. The year 2022 was extremely bad since ransomware affected 70% of enterprises. Additionally, the likelihood of a global recession in 2023 makes a rise in ransomware outbreaks likely.
More legislation to regulate ransomware payments will emerge
A study claimed that in 2021 countries would have laws governing ransomware negotiations, payments, and fines. By 2025, 30% of nations will, according to Gartner, have similar laws. As ransomware activities increase in 2023, we can anticipate more decisive government action in this sector.
Small businesses will invest more in cybersecurity
Small businesses are more vulnerable to cyber risks as they have few resources to implement countermeasures. In addition, the economic downturn of 2022 made many small businesses more cash-strapped. However, given the importance of cybersecurity for companies and earning customer trust, small businesses are expected to drive more resources for proper security measures. The cybersecurity industry will develop new models to support businesses. For example, Arete recently announced a program that will enhance organizations’ security posture and minimize the impact of potential cyberattacks through an incident response retainer program. This program will help reduce the impact of cyber risks on businesses. The idea is to help SMBs assess their current cyber risk infrastructure in line with the changing security landscape and provide expert guidance through the journey to meet industry and regulatory requirements.
Bottomline
Cybersecurity is a dynamic area in which threat actors continue to evolve their methods to exploit any loophole successfully. But on the other hand, the cybersecurity industry and organizations are investing more time and resources in finding new means to tame the challenge.
In the future, the success of a business enterprise, irrespective of the size, will depend on how well it can eliminate risks, plug loopholes and build an ecosystem of resilience to take on any unexpected cyber incident. While it will be interesting to watch how the global economy unfolds in 2023, companies prioritizing cybersecurity will stand a better chance of surviving any disruption caused by evolving threat actors.
Authored By
