FOCUS 29
IN THE UK ALONE, CYBER ATTACKS COST COMPANIES SOME £27 BILLION A YEAR, ACCORDING TO RESEARCH PUBLISHED BY THE CABINET OFFICE.
Cyber attackers fall into four broad groups:
1. hacktivists, motivated by the desire to humiliate
2. organised criminals, motivated by fi nancial gain
3. economic spies, motivated by the potential for commercial or political advantage
4. insiders, motivated by fi nancial gain, or the desire to settle a grudge.
Malcolm Marshall, partner at KPMG, advises automotive companies to think about what they need to protect, and how best to do it: “You need to be clear about what your crown jewels are in terms of intellectual property, and defend them properly.”
Malcolm adds that organisations need to be particularly vigilant about the security arrangements of everyone along their supply chain, as this is often the weakest link. “Third- party contractors are seen as the soft target by hackers,” he says. “Prime contractors have good security but are sometimes not as conscientious about all of the organisations along what could be a long and complex supply chain. It’s usual for the prime contractor to investigate the security of direct suppliers but not beyond that, and standards can vary enormously. If one contractor along the chain has poor security, that could open the door.”
The risks of cyber attacks in terms of potential losses and damage are huge but increasingly, also in terms of regulatory penalties. The UK Information Commissioner’s Offi ce has the power to levy fi nes of up to £500,000 for data breaches and under proposed EU regulation, companies may be required to report cyber breaches, with failure to do so resulting in fi nes of up to two percent of global revenue. Many automotive companies are making signifi cant strategic and fi nancial investments in order to stay one step ahead of the cyber criminals; those who fail to act quickly could be taking a sizeable risk with their business.
© 2013 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.
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CYBER
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