On Jan. 11, the World Economic Forum (WEF) published “The Global Risks Report 2017.” As we did for the 2016 edition, we dug in this year’s report to analyze key findings as they relate to cybersecurity.
Digging Into WEF’s ‘Global Risks Report’
The report tracked top risks from the past 10 years. While cyberattacks ranked fourth in 2012 and fifth in 2014 in terms of likelihood, massive incidents of data fraud and theft occupied fifth place in the 2017 report.
In terms of impact, the 2014 edition listed critical information infrastructure breakdown as the fifth most impactful problem. In fact, that single entry was the only one across 50 cells of high-impact risks tracked for the past decade.
At first glance, the report indicated that cyber risks matter only marginally in terms of likelihood and very little in terms of impact. This, however, is misleading.
Technological Risks and Trends for 2017
Looking at the list of technological risks tracked for 2017, the report specifically mentioned:
- Adverse consequences of technological advances;
- Breakdown of critical information infrastructure and networks;
- Large-scale cyberattacks; and
- Massive incidents of data fraud and theft.
Among the many interesting diagrams in the report, the global risk landscape visual organizes risks across likelihood and negative impact. The chart showed that cyberattacks — along with terrorist attacks, data fraud/theft and natural disasters — are highly likely to occur. It also showed that cyberattacks rank high in terms of negative impact, just below infectious diseases, food and water crises, fiscal crises and the risks mentioned previously.
In many ways, the failure to register cyber as a top five risk is illustrative of the many unknowns the digital realm presents to global leaders, who often struggle to understand just how vulnerable we all are and how pervasive technology has become. With this pervasiveness comes dependency, a rising trend mentioned in the report. WEF also singled out emerging technologies, such as artificial intelligence, for their potential cybersecurity benefits.
Balancing Security and Government Reach
The report emphasized that cyberattacks and breaches have led many countries to enact tough national security and counterterrorism measures. That changes the rights of citizens and alters how governments work in the 21st century.
An accompanying article, titled “Weaponized AI, Digital Espionage and Other Technology Risks for 2017,” cautioned global firms about the potential loss of digital supply chain access due to the continued — and very much deserved — push for better security and privacy to protect citizens’ data. The article also highlighted concerns that aren’t new for security professionals, but are finally getting much needed global attention: Technology has created new opportunities for industrial espionage or sabotage from afar, as well as for the hacker-for-hire living next door.
Putting It All Into Perspective
The report should help cybersecurity professionals appreciate the challenges and risks facing the C-suite, board directors and world leaders. Cyber is but one wave in a raging storm of global uncertainty, and top executives have a lot on their plates. It is therefore critical to communicate cyber risks in terms of impact on business objectives.
If it feels like the 2017 WEF report is light on cyber, it is. But for many years, the organization has been urging government and business leaders to become more aware of security risks and the global need for cyber resilience in this age of hyperconnectivity.
InfoSec, Risk, and Privacy Strategist - Minnesota State University, Mankato
Chris Veltsos is a professor in the Department of Computer Information Science at Minnesota State University, Mankato where he regularly teaches Information ...