Telecom, media and tech companies are cyber defense standouts: Moody’s

Dive Brief:

• Telecommunications, media and technology companies are outperforming other sectors in cybersecurity, with more advanced defenses and cyber governance models, Moody’s said Thursday in a report on the sector.
• Companies in these sectors accelerated cybersecurity spending by more than 125% on average during the last five years, compared to a 100% growth rate over that period for all global companies, according to the report. Technology companies doubled their cybersecurity spending over the five-year period while telecom businesses increased spending by more than 250%. 
• Cybersecurity spending nearly doubled during the past five years, accounting for 10% of companies’ technology budgets in 2023, according to Moody’s. The report is based on Moody’s research and a survey of more than 1,700 respondents.

Dive Insight:

Companies in the TMT sector showcase more advanced cyber governance practices than the average company globally, due in part to the medium-high cyber risk exposure confronting the sector.

These businesses are especially vulnerable to cyberattacks, Moody’s said.

T-Mobile has publicly acknowledged eight data breaches since 2018, including an August 2021 attack that exposed personal data on at least 76.6 million people. Microsoft is confronting a reputational crisis in the wake of two major nation-state breaches of its core enterprise platforms.

Almost every TMT company reported having a manager or employee designated with primary responsibility for cybersecurity. One in 4 companies have cyber expertise at the board level, compared to 1 in 10 for all sectors globally, the report found.

Vendor risk management in telecom, media and technology is also more robust than average. “A higher proportion of issuers report that they require both new and current vendors to undergo a cybersecurity risk assessment,” Moody’s said in the report.

“TMT issuers are also more likely to require vendors to report cybersecurity incidents and carry standalone cyber insurance,” Moody’s said. “Technology exhibits the most robust vendor review practices.”