Tech companies excel in cybersecurity, according to Moody's assessment
The telecommunications, media, and technology (TMT) sector has emerged as a global leader in cybersecurity practices, according to a recent report by Moody's. The report, based on research and a survey of over 1,700 respondents, highlights several key factors that contribute to the sector's advanced cybersecurity defenses.
The complexity of TMT operations, with their interconnected ecosystem of devices, networks, cloud environments, and external services, creates vast and evolving attack surfaces. To manage these risks effectively, TMT firms have implemented advanced detection rules, user and entity behavior analytics (UEBA), and automated incident response systems.
Moreover, TMT companies have invested in sophisticated Security Operations Centers (SOCs) that unify security operations across all vectors. These next-generation SOCs can detect and respond to tens of thousands of security events per second, with automation playing a major role, including AI-powered tools for speeding threat detection and compliance monitoring.
Given their extensive use of cloud infrastructure, TMT firms have adopted robust cloud security management platforms. These tools provide continuous monitoring and protection across hundreds of cloud accounts and resources, essential for securing hybrid and multi-cloud deployments.
The economic and geopolitical stakes of the TMT sector also drive enhanced cybersecurity practices. With global supply chains heavily relying on foreign tech components and materials, TMT companies are vulnerable to geopolitical disruptions. To ensure supply chain integrity and operational resilience, TMT firms have adopted advanced cybersecurity strategies.
Regulatory demands and stakeholder expectations also play a significant role. The TMT sector faces strong regulatory frameworks and scrutiny, driving firms to align with global best practices in cybersecurity crisis management, resilience, and stakeholder communications to maintain business continuity and compliance.
The report by Moody's found that TMT companies have a higher proportion of issuers requiring vendors to undergo a cybersecurity risk assessment and to carry standalone cyber insurance. This trend is a response to the medium-high cyber risk exposure and vulnerability to cyberattacks in the sector.
Technology companies exhibit the most robust vendor review practices within the TMT sector. Almost every TMT company has a manager or employee designated with primary responsibility for cybersecurity, and one in four TMT companies have cyber expertise at the board level, compared to one in ten for all sectors globally.
Cybersecurity spending for TMT companies nearly doubled during the past five years, accounting for 10% of their technology budgets in 2023. Technology companies doubled their cybersecurity spending over the five-year period, while telecom businesses increased spending by more than 250%.
Notably, TMT companies showcase more advanced cyber governance practices than the average company globally. This is evident in their robust vendor risk management, which is more robust than average in the TMT sector.
However, despite these advancements, TMT companies remain especially vulnerable to cyberattacks. High-profile incidents, such as the data breach at T-Mobile that exposed personal data on at least 76.6 million people in August 2021, underscore the ongoing challenges in maintaining effective cybersecurity defenses.
Microsoft, for instance, is currently facing a reputational crisis due to two major nation-state breaches of its core enterprise platforms. These incidents serve as a reminder that no company is immune to cyber threats, and that the fight against cybercrime is an ongoing battle.
In conclusion, the inherent complexity of TMT operations, reliance on cloud and interconnected systems, combined with significant economic stakes and regulatory demands, push these companies to pioneer advanced cybersecurity strategies surpassing many other sectors worldwide. While progress has been made, the ongoing threats require continuous vigilance and investment in cybersecurity to protect businesses and consumers alike.
- The telecommunications, media, and technology (TMT) sector's high-profile data breaches, such as the one at T-Mobile, highlight the need for continued vigilance and investment in cybersecurity to protect personal data.
- TMT firms have invested significantly in cybersecurity risk management, adopting advanced methods like automated incident response systems, AI-powered threat detection tools, and next-generation Security Operations Centers (SOCs) to combat cyber risks.
- To maintain business continuity and compliance under strong regulatory frameworks, TMT companies have doubled their cybersecurity spending in the past five years, allocating 10% of their technology budgets to cybersecurity in 2023.
