Why Cybersecurity Matters When Targeting a New Market
For any business, simply being in a position to target and enter a new market is already a win. As everything gets more digitized, however, it is imperative for any new foray to be founded on a good understanding of the risks involved so that the business can proactively prepare for them. And in this day and age, cybersecurity risks are always front and center of any discussion for businesses venturing into new markets.
Businesses vs. Cyber Attacks
Cyber attacks have been known to seriously damage not only profit margins, but also reputations. And the well-documented hacks that happened to Yahoo and Uber are proof that even the most established enterprises are not impervious to them. In the US, Small Business Trends reports that almost 50% of cyber attacks target small businesses, and about 60% of those targeted go out of business within 6 months of a cyber attack.
Cyber attacks can even affect a country’s overall economic success. In Asia Pacific, for instance, Microsoft found that potential cyber losses to the entire region totaled about $1.745 trillion in 2017 alone. The U.S White House Council of Economic Advisors estimates that U.S. businesses lose more $50 to 100 billion per year due to cyber breaches. In fact, the recent NotPetya malware cost FedEx and A.P. Moller-Maersk more than $300 million each.
When entering a new market, these risks are even more pronounced. If your business is expanding internationally, for instance, you need to be well-versed in the specific nuances that govern cybersecurity in the countries where you intend to put up offices, as well as compliance requirements. For example, the European Union’s General Data Protection Regulation (GDPR) stipulates that businesses must report any data breaches within 72 hours if they have an adverse effect on user privacy. In some cases, violators of the GDPR may be fined up to €20 million or up to 4% of the annual worldwide turnover of the preceding financial year in case of an enterprise, whichever is greater.
Protecting Client Information and Operational Risks
Conducting a business in these digital times is rife with challenges and risks. For those that are targeting a new market, navigating security issues is of utmost importance. You have to make sure that your business understands the cybersecurity issues that are specific to that industry and deliver client information protection and ensure the safety of your product.
The latter is especially tough to manage in a new market, as you will need time to learn about the various nuances that govern data security, cybersecurity controls and management in that industry. Let’s say that you are expanding your product line. Any new addition comes with its own set of demographics that you will need to learn so that you can protect the device and the information at each stage of the product's life.
The Mocana Difference
Mocana’s end-to-end cyber protection system offers unrivaled security benefits from development to manufacturing to device activation and upgrades and management. Trusted by hundreds of global industrial and IoT companies, we help our customers to make their products tamper resistant and secure, and we can definitely help you with yours.