For a long time, digital security was considered a cost. It’s an invisible investment, difficult to justify in spreadsheets, and often postponed until something goes wrong. Currently, this behavior has a high cost. What was once just a technical risk has become an element of corporate governance, reputation and market value.
Information security is no longer a subject exclusive to the IT area, but has become the focus of strategic discussions. In a world where the majority of corporate assets are digital, the level of protection that a company provides to its data and systems is part of its invisible balance sheet, but which determines the company’s real value.
The price of “after”
Recent IBM research calculated that the global average cost of a data breach is $4.88 million per incident. In Brazil, this amount already exceeds US$ 1.4 million and increases every year. These amounts cover not only the ransom paid in ransomware cases, but also loss of customer confidence, interruption of operations, litigation and regulatory penalties.
Companies listed on the stock exchange feel this impact directly on their shares: according to a study published by Harvard Business Review, companies targeted by cyber attacks can experience a drop of up to 7.5% in their market value in the days following a public incident. Digital security is already part of the perception of risk in the capital market, and, consequently, of valuation.
From infrastructure to credibility
Executives understood that allocating resources to cybersecurity goes beyond protecting systems, it is about safeguarding trust, which is the most precious asset of any company. In areas such as finance, healthcare, telecommunications and digital retail, every transaction is underpinned by trust.
Security has become one of the most important metrics on ESG agendas, especially in the governance pillar, and this is no coincidence. A company that neglects data protection highlights institutional fragility and digital immaturity, factors that are currently enough to drive away investors and strategic partners.
Similarly, the number of companies that include security indicators in their internal audits and annual reports is increasing. Cyber risk is no longer just a technical problem: it is a quantifiable financial exposure.
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The CISO left the server room and addressed the board
This paradigm shift resulted in a cultural transformation. The CISO (Chief Information Security Officer), who previously worked behind the scenes in IT, now has a voice on boards of directors. In many organizations, security reports directly to the CEO rather than the chief technology officer, highlighting its renewed strategic role.
The contemporary CISO plays the role of risk manager and value articulator. It converts technical vulnerabilities into financial effects, conveys threats in business terms and participates in decisions that directly affect the continuity of operations.
Companies that understand this dynamic generally respond more quickly, reduce damage and, in many situations, prevent incidents from occurring.
The economics of attacks
There is also a perverse economic aspect: cybercrime has become an industry. There is a global ecosystem of professional hackers, with subscription, technical support and profit sharing models, ranging from automated attacks to RaaS (Ransomware as a Service) services. It is an extremely profitable parallel economy, which expands as companies digitize.
The sophistication is so great that small and medium-sized companies, which were previously not considered, have become the main targets, precisely because they do not have solid defenses. And for them, a single attack can mean the end of their activities.
From network security to the human element
Despite all the technological progress, the most vulnerable point remains the human. A recent report from Verizon indicates that more than 80% of cyber incidents start due to user errors, such as weak passwords, clicking on malicious links or failures in procedures.
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Therefore, companies that view security as just an investment in software and hardware are only addressing part of the problem. The other part requires organizational culture, training and ongoing awareness.
Security is not something you implement, it is something you teach. And this is a lesson that companies learn the hard way.
The new measure of value
In the coming years, the trend is evident: investors, insurers and regulatory bodies will demand greater clarity regarding companies’ security posture. Much like financial audits or sustainability practices are today, cyber maturity will be a sign of credibility and value.
The company that understands this reality and integrates cybersecurity into its strategy, instead of seeing it as a cost, not only reduces risks, but also generates value. And in a market where trust is the new capital, protecting data is protecting the business.
