Digital Reality: Opportunities or Threats for Business?

09/ 07/ 2020

Digital technologies offer us boundless possibilities, but at the same time, we become more exposed to various cyber threats. How to protect the state and business from digital challenges? What is effective risk management in the online environment? Our experts tried to answer these questions during the online conference of the European Business Association “Cybersecurity, major issues for business».

Watch the video of the meeting

Adolf Doerig, Chairman of Advisory Board of Advanced Cyber Security of the Swiss Academy of Engineering, considers that the principles of digital security should be at the core of the modern economic system. Thus, it is no longer enough to implement security protocols. Information security should become an integral part of the development strategy of both business and government to secure their digital sovereignty. According to Mr. Doerig, all existing cybersecurity software comes from the United States and China. Therefore, there is an urgent need to develop a European defense product. This will not only enhance the region’s readiness for possible cyberattacks but also create new jobs. To maintain an effective cybersecurity system, it is necessary to allocate more than 10% of the total project budget. It is also important to identify the company’s digital assets, monitor key technical processes, and cooperate with the local government on information security.

According to Oleksandr Kardakov, Cybersecurity expert and Chairman of the Supervisory Board of Octave Capital, only 25% of large Ukrainian corporations have an advanced IT infrastructure to counter cyber threats. These are major players in the banking sector, retail, and communications. Mr. Kardakov believes that there is no need for the total implementation of security measures. First, it is necessary to understand whether an individual business has an urge in digital data protection. Very often small and medium-sized businesses can do without complex information defense systems. 

Mstislav Banik, Director of the Directorate for e-Government of the Ministry of Digital Transformation of Ukraine, noted that Ukrainians tend to have a distrust in the state product. Therefore, despite the success of the “Diia” project, business, not the government, should be the innovators in the field of electronic services and digital technologies. However, the state continues to promote digitalization, which also involves cybersecurity. The Ministry’s current priority is to reduce the number of state registries with the introduction of the logging system to provide more secure personal data management and prevent the risks for corruption. Also, due to the Ministry’s efforts, all authorities now have relevant specialists in the staff who help to implement digital solutions in the work of institutions. 

According to Oleksandr Melnyk, Senior Associate at Vasil Kisil & Partners Law Firm, Ukraine’s legislation on the information regulation does not meet the requirements of the new reality. For example, legislation on the data protection in telecommunications systems was adopted more than 25 years ago, while the relevant EU Directive is dated 2016. Therefore, businesses do not have a relevant and clear algorithm to protect their rights in the event of a cyber incident. Currently, one of the ways for legal protection is to insure companies against cyber threats. It is also important to address the issue of self-defense in cyber incidents to protect sensitive information and critical infrastructure, without which the full functioning of the business is impossible.

Thus, digitalization is a complex process that requires not only high-tech solutions but also appropriate strategic and legislative innovations. Besides, prior to the implementation of high-tech cybersecurity solutions, it is important to analyze exactly the relevance of such a decision for an individual business.

On behalf of the European Association, we thank the speakers for the informative discussion and comprehensive disclosure of the topic!

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