Tech Companies Lead in Cybersecurity Defense, According to Moody's Rating
In the rapidly evolving world of Telecommunications, Media, and Technology (TMT), companies are investing heavily in cybersecurity measures and governance frameworks to protect their vast digital ecosystems from sophisticated cyber threats.
According to a recent report by Moody's, TMT firms are prime targets for advanced attacks such as ransomware, DDoS, AI-powered hacks, and state-sponsored intrusions. This increased exposure to cyber risks is due to the sector's complex and interconnected infrastructure, which includes multiple adjacent networks, cloud environments, and extensive third-party supply chains.
The report highlights the uniquely large attack surface that TMT companies face, requiring extensive and continuous investment in cybersecurity measures and governance frameworks. One of the key reasons for this investment is the sophistication of cyberattacks targeting TMT firms.
Another factor driving cybersecurity spending in the TMT sector is the need for real-time threat detection and response capabilities. With high data volumes and essential services, TMT companies require sophisticated, real-time monitoring and incident response capabilities, driving greater investment in cybersecurity infrastructure.
The report also indicates that TMT companies are more likely to require vendors to undergo more stringent cybersecurity risk assessments than the average global company. This focus on vendor risk management is particularly robust in the TMT sector, with a higher proportion of companies requiring both new and current vendors to undergo a cybersecurity risk assessment.
TMT companies have accelerated cybersecurity spending more than the average global company over the last five years. In 2023, cybersecurity spending will account for 10% of TMT companies' technology budgets. Technology companies have doubled their cybersecurity spending, while telecom businesses have increased spending by over 250%.
The report suggests that TMT companies have increased their focus on cybersecurity spending, with cybersecurity spending nearly doubling over the past five years. One in four TMT companies have cyber expertise at the board level, compared to one in ten globally.
Moody's found that TMT issuers are more likely to require vendors to report cybersecurity incidents, a practice not as common in other sectors. Technology companies exhibit the most robust vendor review practices within the TMT sector.
The report on the TMT sector is based on Moody's research and a survey of over 1,700 respondents. It underscores the essential role that TMT companies play in the digital economy and the significant challenge they face in maintaining robust cybersecurity defenses and governance models.
In conclusion, the TMT sector's critical role in the digital economy, combined with its complex, interconnected infrastructure, makes cybersecurity both a high priority and a significant challenge. This explains why TMT companies lead in cybersecurity spending and governance practices worldwide.
- In the digital economy, TMT companies face a uniquely large attack surface due to their complex infrastructure, necessitating extensive cybersecurity measures and risk management.
- To protect against advanced cyber threats such as ransomware, DDoS, AI-powered hacks, and state-sponsored intrusions, TMT firms are investing heavily in real-time threat detection and response capabilities.
- With the increasing focus on cybersecurity, TMT companies are more likely to require vendors to undergo stringent cybersecurity risk assessments, exhibiting robust vendor review practices and prioritizing incident reporting.
