ESG – Cyber risk


Burger points to the example of a hearing aid maker that saw its EBIT shrink 22% following a cyberattack last year. “This demonstrates how cybercrime can have serious implications,” he adds. Lower revenue through operational disruption, loss of customer confidence and legal bills are not the only consequences of a successful hacking. Fines can be heavy. General Data Protection Regulation (GDPR), which was introduced in Europe in 2018, states that companies failing to keep customer data secure face a fine of up to 4% of revenue.


In the mainstream Some of the world’s most well-known businesses and organi- sations have been hacked, including Marriott, eBay, Linkedin, the city of Baltimore, Uber, Sony, Google and, as we went to press, budget airline easyjet. Even celebrities and movie stars have not escaped as their private pictures have been leaked online. With such high-profile attacks, corporates are taking notice and improving their cybersecurity, says Anu Rames, an ESG analyst at BNP Paribas Asset Management. “Cyber risk is a business strategy risk at the end of the day,” she adds. It has become a mainstream strategy because the size of such


THE INVISIBLE ENEMY


Issue 93 | May 2020 | portfolio institutional | 35


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