The modern retail landscape is fraught with IT complexities that pose significant challenges to maintaining robust cybersecurity measures. Recent research underscores this growing concern among IT leaders, who stress the importance of increased visibility across their businesses to bolster their security efforts. As the digital transformation accelerates, retailers must navigate disparate systems, evolving cyberthreats, and compliance demands to protect their operations and customer data effectively. This article delves into the core issues identified in the research and explores potential solutions to enhance cybersecurity resilience in the retail sector.
The IT Complexity Conundrum
One of the primary challenges highlighted by IT leaders is the presence of disparate systems, some of which are legacy, that impede the deployment of systemic cybersecurity measures. The integration of old and new technologies often creates vulnerabilities, making it difficult to establish a unified defense strategy. According to one respondent, “the complexity of IT environments, the rapid evolution of cyberthreats, limited resources for cybersecurity, and the need to comply with various regulations and standards” are significant hurdles that must be overcome.
To illustrate the magnitude of this issue, consider that over 70% of retailers use multiple IT systems, with many relying on outdated legacy infrastructure that lacks modern security features. This fragmentation not only increases the risk of cyberattacks but also complicates the process of detecting and responding to threats in real time.
Tools and Technologies in Use
Despite the widespread use of advanced tools such as security information and event management (SIEM) systems, threat hunting, incident response, multifactor authentication (MFA), and next-generation firewalls, less than 50 percent of respondents expressed high confidence in these tools’ effectiveness. This skepticism highlights a gap between the capabilities of these technologies and the growing sophistication of cyber threats.
Instead of relying solely on these point solutions, IT leaders are increasingly favoring broader, more integrated defenses like network security and data security. These approaches aim to enhance visibility and control across the entire enterprise, rather than addressing vulnerabilities in isolation. For example, a network security strategy that includes comprehensive monitoring and anomaly detection can help identify potential threats early, allowing for a more proactive response.
Embracing Data-Centric Security
With data permeating every endpoint, a data-centric approach to cybersecurity is becoming crucial. This strategy involves focusing on data protection, data security, and data governance to ensure that sensitive information is appropriately identified, classified, and safeguarded. Stephanie Hagopian, vice president of security for CDW, emphasizes the importance of this approach: “I think it will be mostly around data protection and data security, data governance, and ensuring that data is appropriately identified, classified, and that the appropriate guardrails are put in place.”
A data-centric security model can significantly enhance a retailer’s ability to protect against breaches. For instance, implementing data loss prevention (DLP) tools and encryption can prevent unauthorized access and exfiltration of sensitive information. Furthermore, robust data governance practices can help ensure compliance with regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), reducing the risk of costly fines and reputational damage.
The Value of Visibility in IT Systems
Greater visibility into IT systems is a critical factor in enhancing cybersecurity efforts. Retail respondents who were most confident about their cybersecurity posture reported having extensive visibility into their IT environments. This capability allows them to identify fault lines between integrations, network connection points, and Internet of Things (IoT) devices, enabling them to remediate threats before they escalate.
The research revealed that Software as a Service (SaaS) solutions are instrumental in achieving this level of visibility, with 66 percent of respondents identifying SaaS as their top choice for procuring new IT tools and services. SaaS platforms offer scalable and flexible solutions that can be easily integrated into existing IT infrastructures, providing real-time insights into potential vulnerabilities and facilitating more effective threat management.
Buck Bell, leader of CDW’s Global Security Strategy Office, underscores the importance of a holistic view of the enterprise: “The more holistic your view of the enterprise as a whole — not only the specific cyber risk itself but also the business impacts that are associated with it — typically, the more successful you’re going to be in your cyber resilience aims. From my perspective, cyber risk is business risk.”
Diagnosing and Addressing Cyber Incidents
A recurring theme in the research is the difficulty IT leaders face in diagnosing the root causes of cyber incidents. Whether dealing with IoT connectivity issues or artificial intelligence malfunctions, a lack of understanding can hinder the development of a clear cyber resilience strategy. Retailers need to diagnose issues accurately before they can implement effective solutions.
Stephanie Hagopian suggests that retailers can achieve this by collaborating with tech partners, connecting with industry peers, and retracing the steps of cyber incidents. Sometimes, the root cause may be an unexpected one, such as a new tool intended to streamline operations but instead causing disruptions. Hagopian notes that “various departments are purchasing their own technology and tools, so you have to retrofit that back into the central infrastructure and the centralized tooling that has been approved. And then there’s always shadow IT, where an end user could potentially purchase something in a silo.”
Mitigating Risks and Reducing Downtime Costs
Proactive risk mitigation and reducing downtime costs are crucial components of a comprehensive cybersecurity strategy. While responding to incidents is essential, defensive planning involves identifying the biggest risks and developing strategies to mitigate them. Bell highlights the importance of this approach, noting that about 8 in 10 retail IT leaders surveyed felt at least somewhat prepared for a cybersecurity incident, despite the challenges of integrating legacy tools.
For those who felt less prepared, the negative consequences of a breach, such as operational downtime and brand reputation damage, are significant motivators. The financial impact of downtime can be staggering, with a quarter of respondents reporting losses of $5 million to $10 million following a data breach in the past five years. In some scenarios, operational downtime can cost over $100 million per week. These costs underscore the importance of investing in robust cybersecurity measures to prevent such devastating outcomes.
Building Trust Through Cyber Resilience
Beyond financial losses, a cybersecurity breach can erode the basic sense of trust between a retailer and its customers. When a breach occurs, customers may question the retailer’s ability to protect their personal information, leading to a loss of customer loyalty and a tarnished brand reputation. Bell emphasizes that “the basic sense of trust tends to be compromised when a breach occurs,” highlighting the long-term impact of cyber incidents on customer relationships.
To rebuild and maintain trust, retailers must demonstrate their commitment to cybersecurity through transparent communication and effective incident response. This includes promptly informing customers about breaches, outlining the steps taken to address the issue, and implementing measures to prevent future incidents. By prioritizing cyber resilience, retailers can reassure customers that their data is secure and that the retailer is taking all necessary precautions to protect it.
Conclusion
The IT complexity problem faced by retailers is multifaceted, involving disparate systems, evolving cyberthreats, limited resources, and regulatory compliance challenges. However, by adopting a holistic approach to cybersecurity that emphasizes visibility, data-centric security, and proactive risk mitigation, retailers can enhance their resilience and protect their operations and customers.
Advanced tools and technologies, such as SIEM systems, threat hunting, and multifactor authentication, play a critical role in defending against cyber threats. However, integrating these tools into a cohesive strategy that addresses the entire enterprise’s security needs is essential. Greater visibility into IT systems, enabled by SaaS solutions, allows retailers to identify and remediate threats more effectively, reducing the risk of costly breaches and downtime.
Ultimately, building trust through robust cybersecurity measures is crucial for retailers to maintain customer loyalty and protect their brand reputation. By prioritizing cyber resilience and demonstrating a commitment to safeguarding customer data, retailers can navigate the complexities of the modern IT landscape and emerge stronger in the face of cyber threats.
