Industry View of the impact of data breaches on brand value

As digital increasingly becomes the primary interface between brands and their customers, cybersecurity which was traditionally seen as a cost of doing business, will increasingly become central to their proposition and their brand experience.

Technology as a sector forms the lion’s share of the top Best Global Brands. The top 3 brands in the world grew 50% in value, on an average. The absolute value at risk reflects both, the size of these brands as well as their relevance. While it ranges between 9 and 12% of their value, it is the highest, across industries. Traditional bank brands handling large amounts of customers’ wealth might see up to 16-17% of their brand value at risk. For insurance brands, this value at risk is 11-12%. This reflects the risk that customers could face in the event of an insurance claim. The risk to a traditional auto brand might primarily be the bad press and the dent in its reputation. They may only lose 8-9% of their brand value in the event of a breach. A large part of the risks to luxury brands comes from reputational risk as well as the risk of “spoofing” where fake URLs are used to cheat customers. As these brands increasingly adopt digital-first strategies to engage with the new-age consumer, the value at risk is expected to trend higher.

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