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Cyber risks in emerging markets

Cyber risks in emerging markets


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Cyber risks in emerging markets

Increasingly, organisations operate in chains and as their systems integrate, it becomes possible to attack one organisation to access the digital assets of another. 

The extent to which global value chains are integrated across borders today means that weakness in cyber security in emerging markets can easily be passed on to mature ones via the supply chain. 

This paper considers the weak links of emerging markets in cyber security. The risks to emerging markets arise from four areas: weak processes and governance, the complexity of global supply chains, the need to remain low cost to attract investment, and the rapid adoption of technology without adequate cyber defenses. 

As more global companies outsource their IT and other processes, they increase their dependence on how these outsourcing companies handle cyber and other risks. The cyber factor is likely to be increasingly important when companies decide where to outsource or offshore. Those suppliers handling confidential third-party data in emerging markets that are able to demonstrate strong security posture around that data are likely to be more attractive and potentially able to win more business. 

If well-managed, cyber security can become a strategic edge for outsourcing firms in emerging markets.



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