Data sharing can be beneficial for companies and customers, but the consequences of a data breach are severe – particularly for companies working in sensitive environments like energy, banking, insurance, and healthcare.
A cyber-attack on the power grid could disrupt healthcare services, and a data breach at a bank has the potential to erode confidence across the banking sector and impact the wider economy.
Companies that share customer data or operate in sensitive environments will need to put in place appropriate cybersecurity measures to protect against possible breaches. Our models show that when companies operate in highly competitive environments, adopting secure hardware can deliver competitive advantages and improve market share. However, when all companies invest in cybersecurity, a market can become overly secure.
Adopting secure hardware can be an expensive decision. Small companies may choose to opt out of secure hardware adoption, focusing instead on growth and stability. For larger companies, new hardware can be challenging to integrate with existing systems and established ways of working.
Our modeling highlights the need for companies to carefully balance innovation, cost, regulatory compliance, and security. We offer reliable research insights that can help to inform decisions about:
- Vulnerability management and secure hardware adoption.
- Selecting vendors that guarantee effective security measures, like encryption, in the context of data sharing.
- Developing privacy and cybersecurity policies when collecting biometric data or operating in the metaverse.
- How to maintain data confidentiality and integrity when data is transferred.
- Adopting appropriate levels of security measures to maintain profitability and comply with regulatory requirements.
As a collaboration of academics from the University of Edinburgh and the University of Leicester, we work together with businesses and regulators to advance digital security through collaborative research.
Due to the interconnected nature of digital economies, our insights have relevance and applicability across the UK, Europe, and internationally.