Why Is Information Security Important? 7 Compelling Reasons

In a world where data is often considered as valuable as gold, the significance of information security cannot be overstated. It acts as our first (and often last) line of defense against a sizable list of threats.

Startling statistics reveal that only 5% of companies adequately protect their data. Whether the root cause is a lack of resources or lack of understanding, the results are often the same—catastrophic data loss, non-compliance, and legal action.

At ISMS Connect, we simplify complex information security concepts for SMBs on the road to implementing secure, compliant ISMSs. And in this guide, we’ll share seven compelling reasons why information security should be a top priority for any organization.

Let’s get started.

What Is Information Security?

Information security (or InfoSec) is a comprehensive set of practices designed to protect data from unauthorized access or tampering 

The ultimate goal of information security is to protect an organization’s assets—both tangible and intangible—from potential threats. It involves implementing policies and measures that prevent unauthorized access, use, modification, destruction, or disclosure of confidential information. 

This is easier said than done—especially given the massive range of threats and regulations.

If you’re feeling overwhelmed, ISMS Connect is here to help. We break down complex topics through step-by-step guides, pre-filled document templates, and on-demand access to expert InfoSec consultants. SMBs can turn to use for the support they need to implement ISMSs that are compliant with standards like ISO® 27001 and TISAX®.

Uses for Information Security

Information security has a wide range of uses in various sectors, including:

• Protecting Data: One of the primary uses of information security is to protect data from unauthorized access, alteration, or destruction. This includes both digital data and physical data.

• Preventing Cyberattacks: Information security measures help prevent cyberattacks like hacking, phishing, and denial-of-service (DoS) attacks.

• Ensuring Compliance: Many industries have regulations requiring them to protect certain types of data. Information security helps ensure compliance with these regulations.

• Maintaining Business Continuity: By protecting against threats that could disrupt operations, information security helps ensure business continuity.

• Preserving Reputation: A data breach can damage an organization’s reputation. By preventing such incidents, information security helps preserve an organization’s reputation.

• Protecting Privacy: Information security measures help protect the privacy of individuals by preventing unauthorized access to personal data.

• Supporting Ethical and Legal Requirements: Information security helps organizations meet their ethical and legal responsibilities to protect the data they hold.

Common Information Security Risks

Some common information security risks are:

• Malware: malicious software that can infect devices or systems and perform harmful actions, such as stealing data, encrypting files, or disrupting operations.

• Phishing: a form of social engineering that involves sending fraudulent emails or messages that appear to come from legitimate sources and tricking recipients into clicking on malicious links or attachments or providing sensitive information.

• Ransomware: a type of malware that encrypts the victim's data and demands a ransom for its decryption. Ransomware can cause significant losses and damage to organizations and individuals.

• Data breaches: unauthorized or accidental exposure of confidential or sensitive data to unauthorized parties. Data breaches can result from cyberattacks, insider threats, human errors, or physical theft.

• Denial-of-service (DoS) attacks: cyberattacks that aim to overwhelm a system or network with excessive traffic or requests and prevent it from functioning properly or providing services to legitimate users.

• Identity theft: the fraudulent use of someone else's personal information, such as name, address, credit card number, or social security number, for financial gain or other purposes.

• Password cracking: the process of breaking or guessing the passwords of users or systems using various methods such as brute force, dictionary attacks, or phishing. Password cracking can enable attackers to access protected data or resources.

7 Reasons Why Information Security Is Important

1. Safeguarding Confidentiality

Information security protects sensitive information from falling into the wrong hands. Sensitive information can include customer data, employee records, business plans, product designs, or research results. 

If this information is leaked, stolen, or compromised, it can have serious consequences for your organization, such as:

• Loss of reputation and trust

• Legal liability and fines

• Competitive disadvantage and loss of market share

• Damage to brand image and customer loyalty

• Exposure to fraud and identity theft

For example, in 2017, Equifax (one of the largest credit reporting agencies) suffered a massive data breach that exposed the personal information of 147 million people, including names, social security numbers, birth dates, and addresses.

The breach resulted in a nearly $700 million settlement with the Federal Trade Commission (FTC), as well as numerous lawsuits and investigations. Equifax also faced a public backlash and a decline in its stock price.

2. Staying Vigilant Against Threats

Another reason why information security is important is that threats are everywhere and constantly evolving. Cyberattacks can come from various sources, such as: 

• Hackers: Individuals or groups who use malicious software or techniques to break into systems or networks for personal gain, curiosity, or mischief.

• Cybercriminals: Organized groups who use cyberattacks to extort money, steal data, or disrupt operations for financial or political motives.

• Insiders: Employees, contractors, or partners who abuse their access privileges to steal or leak information for personal or professional reasons.

• Nation-states: Governments or agencies that use cyberattacks to spy on, sabotage, or influence other countries or organizations for strategic or ideological purposes. 

In 2020, SolarWinds, a software company that provides network management tools to thousands of customers worldwide, including government agencies and Fortune 500 companies, was hit by a sophisticated cyberattack that compromised its software update process. 

The attackers inserted a backdoor into the software updates that allowed them to access the networks of SolarWinds' customers and steal sensitive information. The attack was attributed to a state-sponsored hacker group believed to be linked to Russia.

3. Mitigating Costly Security Breaches

Security breaches are expensive and can have long-term impacts on your organization's finances and operations. According to a report by IBM and the Ponemon Institute, the average cost of a data breach in 2020 was $3.86 million globally and $8.64 million in the US. The report also found that the average time to identify and contain a breach was 280 days.

The cost of a security breach can include:

• Direct costs: Such as incident response, forensic investigation, legal fees, regulatory fines, notification costs, credit monitoring services, etc.

• Indirect costs: Such as lost revenue, lost customers, lost productivity, reputational damage, etc.

• Opportunity costs: Such as missed business opportunities, reduced innovation, reduced competitiveness, etc.

Sony Pictures Entertainment was hacked in 2014 by a group that claimed to be working for North Korea. The hackers leaked confidential data such as emails, scripts, salaries, and personal information of employees and celebrities. 

They also threatened to release more data and attack movie theaters that showed Sony's film ‘The Interview,’ a comedy about a plot to assassinate North Korea's leader. The hack cost Sony an estimated $100 million in direct costs.

4. Guarding Against State-Sponsored Attacks

State-sponsored hackers pose a serious threat to your organization's security and sovereignty. State-sponsored hackers are agents or proxies of foreign governments who use cyberattacks to achieve their political, military, or economic goals. They can target your organization for various reasons, such as:

• Espionage: To steal sensitive or classified information that can give them an advantage or insight into your activities, plans, or capabilities.

• Sabotage: To disrupt or damage your infrastructure, systems, or operations that can affect your performance or availability.

• Influence: To manipulate or interfere with your decision-making, communication, or public opinion that can affect your policies or outcomes.

For example, in 2015, the US Office of Personnel Management (OPM) was breached by a state-sponsored hacker group believed to be affiliated with China.  

The hackers stole the personal data of 22.1 million current and former federal employees and contractors, including background investigation records, fingerprints, and security clearance information. The breach was considered one of the worst in US history and posed grave security risks.

5. Strengthening IoT Security

The Internet of Things (IoT) makes life easier for hackers and harder for defenders. IoT refers to the network of physical devices, such as sensors, cameras, appliances, vehicles, or wearables, that are connected to the internet and can communicate with each other and with users. 

IoT offers many benefits, such as convenience, efficiency, automation, and innovation, but it also introduces many challenges and risks for information security, such as:

• Complexity: IoT devices are diverse, heterogeneous, and distributed, which makes them difficult to manage, monitor, and secure.

• Vulnerability: IoT devices are often poorly designed, configured, or updated, which makes them easy to exploit or compromise.

• Visibility: IoT devices are often invisible or unnoticed by users or administrators, which makes them hard to detect or protect.

• Scalability: IoT devices are numerous, interconnected, and dynamic, which makes them capable of amplifying or spreading attacks.

For example, in 2016, a botnet called Mirai infected millions of IoT devices, such as routers, cameras, DVRs, or printers, by exploiting their default passwords or vulnerabilities. The botnet then used the devices to launch massive distributed denial-of-service (DDoS) attacks against several targets, including Dyn, a DNS provider that supports many popular websites such as Twitter, Netflix, and Amazon. The attacks caused widespread internet outages and disruptions.

6. Fostering Trust Through Security

A sixth reason why information security is important is that information security builds trust between your organization and your stakeholders. Stakeholders are any individuals or groups who have an interest or stake in your organization's activities, such as customers, employees, partners, suppliers, investors, regulators, or the public. 

 Trust is the belief or confidence that your organization will act in a reliable, honest, and ethical manner. Trust is essential for establishing and maintaining positive and productive relationships with your stakeholders. Information security can help you build trust by: 

• Demonstrating your commitment to protecting your stakeholders' information and interests

• Enhancing your reputation and credibility as a responsible and trustworthy organization

• Reducing your exposure to legal or regulatory risks or penalties

• Increasing your customer satisfaction and loyalty

• Improving your employee engagement and retention

• Strengthening your partner collaboration and cooperation

• Attracting more investors and funding

Apple, for instance, is widely regarded as one of the most trusted brands in the world. One of the reasons for its trustworthiness is its strong stance on information security and privacy. Apple encrypts its devices and services by default and does not collect or share more data than necessary. Apple also resists government requests or court orders to unlock its devices or provide access to its customers' data.

7. Ensuring Business Continuity

A seventh and final reason why information security is important is that information security ensures business continuity. Business continuity is the ability of your organization to continue operating normally and effectively in the face of adverse events or disruptions. Such events or disruptions can include natural disasters, accidents, power outages, equipment failures, cyberattacks, or human errors. 

Business continuity is vital for minimizing your losses, recovering quickly, and resuming your operations as soon as possible. Information security can help you ensure business continuity by:

• Preventing or reducing the likelihood or impact of security incidents or breaches

• Detecting or responding to security incidents or breaches promptly and effectively

• Recovering or restoring your data or systems from backups or alternative sources

• Testing or updating your security policies, procedures, or plans regularly

Netflix, for example, is known for its high availability and resilience. One of the reasons for its success is its robust information security strategy. Netflix uses a cloud-based architecture that distributes its data and services across multiple regions and zones. 

Netflix also employs a technique called “chaos engineering” that deliberately injects failures into its systems to test their reliability and performance. Netflix also has a dedicated security team that monitors and responds to security issues or incidents.

Conclusion

The importance of information security cannot be overstated in today's digital landscape. Every organization, regardless of its size, must prioritize information security to protect sensitive data, maintain trust, and ensure business continuity. 

ISMS Connect provides an accessible, cost-effective solution for SMBs, making it easier for them to achieve certification and safeguard their data. Our approach combines DIY resources with advice from experienced consultants and an active community to level the compliance laying field for SMBs. 

Get started with ISMS Connect today and take the first step towards compliance.