Oraa, Glory Mae A.

Course Code: GEED 10043 Course Description: The Contemporary World

Program: Bachelor of Elementary Education-I

Cybersecurity is the biggest threat to the world economy over the next decade,
CEOs say

CEOs see cybersecurity as the number one threat to the global economy over the next
five to ten years, a new report has claimed.

In its 2019 CEO Imperative Study, published Tuesday, management consultancy EY

surveyed 200 global CEOs among the Forbes Global 2000 and Forbes Largest Private
Companies. Researchers also interviewed 100 senior investors from global firms that
had managed at least $100 billion in assets.

Income inequality and job losses arising from technological change were ranked second
and third in the list of threats, while ethics in artificial intelligence and climate change
rounded out the top 5.

‘Tipping point’
According to the study, global CEOs see more growth opportunities than risks in acting
on those global challenges, with half of chief executives saying they believed the world’s
largest companies should be engaged in addressing such problems.

More than two in three CEOs also said they were likely to take a public stand on the
biggest global challenges.

“We have arrived at a tipping point in corporate action on global challenges which will
have a powerful impact. The world’s largest companies are set to undertake a range of
meaningful actions to address global challenges such as income inequality, the ethics of
AI, cybersecurity, and climate change,” the report said.

Wednesday, August 14, 2019

3:08 PM
Oraa, Glory Mae A.
Course Code: GEED 10043 Course Description: The Contemporary World
Program: Bachelor of Elementary Education-I

The most common action being taken by CEOs was realigning their corporate purpose
to address societal problems. Boardrooms are also more likely to establish partnerships
with governments or non-government organizations (NGOs). Just under half of
respondents said they had adopted a corporate reporting framework that incorporated
non-traditional values, or had participated in industry coalitions.

Investors were also surveyed and ranked the integration of global challenges into
corporate strategies as their top priority for CEOs. 43% said a CEOs’ top priority when it
came to addressing these issues should be linking internal governance, performance
measures and rewards to the fixing of global problems.

“CEOs, boards and investors recognize they have a role to play — along with the public
sector — in addressing social challenges that speak to their values and in pursuing
inclusive, sustainable growth,” Carmine Di Sibio, EY global chairman and CEO, said in
a press release Tuesday. “It’s encouraging to see signs of support within the investment
community for long-term value creation.”

EY’s survey was conducted between January and April 2019 and included respondents
from companies in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific
region.

Reference:

Cyber security biggest threat to world economy. (2019, July 9). CEO 2019 Imperative
study. Retrieved from CNBC. com: https://www.cnbc.com/cybersecurity-biggest-threat-
to-world-economy-ceos-say.html

Summary

Cyber threats are on the rise across the globe and no company is immune to the

potential fallout a cyberattack can create. What was seen as a “tech industry” problem

has escalated into a crisis that should concern every high-level executive, especially

CEOs. The CEOs take an action of this issue to prevent the problem of million dollars

loss in their big companies that can take years to repair. First, the world’s largest

companies are set to undertake a range of meaningful actions to address global

challenges such as income inequality, the ethics of AI, cybersecurity, and climate

change. Second, CEOs was realigning their corporate purpose to address societal

Wednesday, August 14, 2019

3:08 PM
Oraa, Glory Mae A.
Course Code: GEED 10043 Course Description: The Contemporary World
Program: Bachelor of Elementary Education-I

problems. Boardrooms are also more likely to establish partnerships with governments

or non-government organizations (NGOs). And last, The Top priority of CEO’s priority

when it came to addressing these issues should be linking internal governance,

performance measures and rewards to the fixing of global problems.

Reaction

Cybercrime is indeed getting the recognition it deserves. However, it is not going to

restrict that easily. In fact, it is highly likely that cybercrime and its hackers will continue

developing and upgrading to stay ahead of the law. So, to make us safer we must need

cyber security. Public safety, military, homeland security professional’s depend more

and more on information technology and secure digital infrastructures. They need

comprehensive knowledge and innovative solutions. All companies need to develop a

keen understanding of the cybersecurity issues at hand so they can make informed

decisions that best benefit all their stakeholders, from the board and investors to the

customers and employees and anyone else in between. Corporate management should

ensure that a good security incident response plan is in place to address any

vulnerability. We need a good combination of laws and technology in harmony with the

laws of other countries and keeping in mind common security standards.

Positive Impact

World/Global Economy: Social media has established itself as a powerful marketing

tool. ICT tools employed within companies help to streamline business processes and

improve efficiency. The unprecedented explosion of connected devices throughout the

world has created new ways for businesses to serve their customers. The Internet has

eased the conditions of investing. It’s easier to track the profits of businesses and

Wednesday, August 14, 2019

3:08 PM
Oraa, Glory Mae A.
Course Code: GEED 10043 Course Description: The Contemporary World
Program: Bachelor of Elementary Education-I

research factors from the news that may affect a business. The Internet has opened

investing to more participants. Consumers can invest in businesses that they may not

have discovered without the Internet.

Philippines: The Philippines growing middle class and young population are important

drivers of IT demand because their spending levels on technology products are on an

upward trajectory and it is benefitting premium brands. Infrastructure investments in the

Philippines are seen as another source of opportunity. There is a growing demand for

automation across sectors and this will lead to robust opportunities for software and

services. Migration to cloud services and cybersecurity solutions are technology trends

that are expected to have the most positive impact on IT services. These developments

are expected to boost investments in information technology products and services and

capital expenditure for telecommunications networks.

Local Community: The Internet has allowed businesses to create communities for those

that share similar interests in products and businesses. These communities help

businesses develop their brand and create a positive image. Businesses are able to

customize products or services with ease, which increases the satisfaction of the

customers and increases profits. The Internet has enabled business to obtain valuable

information about the interests of certain demographics. Consequently, businesses are

also able to effectively use targeted advertising by appealing to specific publishers and

media that are specifically related to their product or service. Small businesses can start

a low-cost website, gain visibility and advertising through connecting with blogs, social

networking and affiliate programs and even find venture capital/investors. The

Wednesday, August 14, 2019

3:08 PM
Oraa, Glory Mae A.
Course Code: GEED 10043 Course Description: The Contemporary World
Program: Bachelor of Elementary Education-I

communication between customers and businesses increases customer satisfaction

and enables businesses to get connected to the customers. The accessibility enables

businesses to further expand their service or product, which increases profit.

Negative Impact

World/Global Economy: A lack of focus on cyber security can be greatly damaging to a

business. There is the direct economic cost of such attacks to the business, such as

theft of corporate information, disruption to trading or even having to repair affected

systems all resulting in financial loss. As well as the physical impact, cyber security

breaches can also cause reputational damage. The impacts of a single, successful

cyberattack can have far-reaching implications including financial losses, theft of

intellectual property, and loss of consumer confidence and trust. The overall monetary

impact of cybercrime on society and government is estimated to be billions of dollars a

year.

Philippines: Companies that get hacked have a bigger problem than just paying for the

initial damage costs and lawsuits. Reputation damage can be devastating to a

company's fortunes. If a bank has been compromised multiple times, customers are

less likely to give them their personal information. The same goes for retailers who lose

information to hackers. These companies lose business over time because of damaged

or weakened reputations. Individuals with stolen identities as a result of hacking have a

similar reputation problem when it comes to their credit rating. The internet and cloud-

based software systems have made data storage a game changer for many companies.

Not only do companies no longer need the physical space to store thousands of

Wednesday, August 14, 2019

3:08 PM
Oraa, Glory Mae A.
Course Code: GEED 10043 Course Description: The Contemporary World
Program: Bachelor of Elementary Education-I

documents, but they are also able to access them quickly and from anywhere. Cloud

storage reduces the costs of office and warehouse space and shredding services. It

also makes it easy for a company to document customer history. With good cloud-

based solutions, there is little risk of losing data as long as it is backed up in secondary

servers in the event the primary server fails.

Local Community: When business is conducted over the Internet, technical glitches or

malicious hackers can expose sensitive data, such as addresses, passwords, credit

card details or bank account details. At best, such an occurrence can result in bad

publicity for the affected company, leading to a loss of revenue as the company

struggles to regain the customers' trust; at worst, it could lead to fraud or identity theft.

The disadvantage of all that convenience is that you don't always know who is on the

other end of the Internet connection. Social networking sites allow people to

impersonate others, gain the trust of unsuspecting users and then defraud them of

money.

Wednesday, August 14, 2019

3:08 PM