The Importance of Security in DX Promotion: Challenges and Solutions for Companies
Digital transformation (DX) has become an essential element for many companies to improve operational efficiency and strengthen competitiveness. However, it is also a fact that cybersecurity risks are rapidly increasing with the progress of DX.
This article explains the security challenges faced when promoting DX and effective measures to address them.
Table of Contents
- DX Explained
- What is DX?
- Benefits of Promoting DX
- Risks of DX
- Why Security is Important in DX
- The Importance of Security Risks
- Security Risks Faced by Companies
- Key Points for Security Measures in the DX Era
- Introducing a Zero Trust Architecture
- Strengthening Endpoint Security
- Thorough Access Management
- Building a Backup System
- Summary
1. DX Explained
DX is an initiative for companies to innovate business processes and business models by utilizing digital technology.
First, let’s take a closer look at the definition and benefits of DX, as well as the risks that digitization brings.
1-1. What is DX?
DX refers to the effort of companies and organizations to innovate business processes, products, and services by utilizing digital technology and enhance competitiveness.
It is not just about IT implementation, but aims to review and streamline the entire business and create new business models.
1-2. Benefits of Promoting DX
By promoting DX, companies can enjoy various benefits.
First, business efficiency is greatly improved, and conventional manual work and complicated processes are automated, so employees can focus on more creative tasks.
In addition, by strengthening customer contact using digital technology, customer satisfaction is improved, and it is possible to build a highly loyal customer base.
Furthermore, the development of new digital services and products creates opportunities to create unprecedented revenue sources.
It should also help with speedy decision-making.
Real-time data analysis enables more accurate understanding of market trends and customer needs, enabling rapid decision-making.
This greatly improves the ability to respond to market changes and maintains a competitive advantage.
1-3. Risks of DX
On the other hand, DX also brings new risks.
As digitization progresses, companies are more likely to become targets of cyber attacks.
In particular, managing important data and customer information online increases the risk of data leakage.
Also, as dependence on the system increases, the impact on operations when a system failure occurs can be significant.
Furthermore, there is a risk of violating compliance if it is not possible to respond to changes in laws and regulations associated with digitization.
For example, violating data privacy regulations such as the Personal Information Protection Act and GDPR may lead to large fines and loss of social credibility.
The improvement of employee skills may not keep up with rapid digitization, which may become a security hole.
2. Why Security is Important in DX
Promoting DX greatly contributes to the growth of companies, but security risks are also expanding accordingly.
If security measures are insufficient, there is a risk of suffering serious damage, let alone enjoying the benefits of DX.
Here, we will explain the importance of security risks and the specific risks faced by companies.
2-1. The Importance of Security Risks
If a large-scale security incident occurs, the impact will be enormous and long-term.
Monetary loss goes without saying, but more serious is the loss of trust from customers.
If customers are disadvantaged by data leakage or system downtime, the trust that has been built over many years may collapse in an instant.
In addition, security incidents are directly linked to the decline in brand image.
When security incidents are reported in the media, doubts arise about the company’s digitization efforts and technological capabilities, leading to a decline in competitiveness.
Such damage to trust and brand value is extremely difficult to recover in a short period of time and can have a significant impact on the company’s long-term growth strategy.
2-2. Security Risks Faced by Companies
The security risks that companies face are diverse.
The ransomware attack, which has been rapidly increasing in recent years, is an extremely malicious attack that encrypts corporate data and demands a ransom.
In many cases, companies that have been attacked lose important data and are forced to stop services.
Phishing attacks are still a major threat.
The methods of trying to trick employees into divulging confidential information through cleverly disguised emails and websites are becoming more sophisticated every year.
The security of the entire company can be threatened if even one employee is deceived.
Internal fraud is also a risk that cannot be overlooked.
Intentional data leakage by malicious employees, as well as information leakage due to negligence by employees with low security awareness, is a serious problem. As the use of cloud services becomes common, cloud security vulnerabilities are also a major issue. There are many cases where important data is leaked from cloud storage that is not properly configured.
Furthermore, with the spread of IoT devices, new intrusion routes through these devices are also being created.
IoT devices that do not adequately consider security are an attractive target for hackers.
3. Key Points for Security Measures in the DX Era
In promoting DX, companies need to prepare for various security risks.
Here, we will explain the key points for security measures required in the DX era.
3-1. Introducing a Zero Trust Architecture
The introduction of a zero trust architecture is one of the security measures in the DX era.
Zero trust is a security model based on the idea of “never trust, always verify”.
Unlike conventional perimeter security, the internal network is not trusted unconditionally.
With the Zero Trust Architecture, all access is strictly verified.
Constantly monitor the status of users, devices, and networks, and prepare a system that can respond immediately if there is any suspicious activity.
In addition, by granting users only the minimum necessary access rights based on the principle of least privilege, the damage in the event of an infringement is minimized.
Furthermore, by implementing network segmentation, you can prevent the spread of attacks.
By combining these measures, it is possible to build a strong security system suitable for the DX era.
3-2. Strengthening Endpoint Security
With the increase in remote work, there is an urgent need to strengthen endpoint security.
In the traditional office-centered work style, security could be ensured in a relatively easy-to-manage closed environment of the in-house network, but with telecommuting and mobile work becoming more common, each terminal is at the forefront of security.
To address this issue, introducing EDR (Endpoint Detection and Response) is effective.
EDR detects suspicious behavior on the terminal in real time and enables a quick response.
It is possible to detect signs of malware infection or unauthorized access as soon as possible and take action before the damage spreads.
Also, implementing device encryption is important.
Mobile devices in particular are at high risk of loss or theft, so encrypting the entire device can protect data from physical threats.
Furthermore, regular application of security patches must not be forgotten.
Attacks targeting software vulnerabilities are relentless, so it is important to continue to apply the latest security measures at all times.
3-3. Thorough Access Management
Appropriate access management is effective in preventing unauthorized access and internal fraud.
In particular, the introduction of multi-factor authentication greatly reduces the risk of password theft.
By combining passwords with authentication using other factors such as smartphone apps and biometrics, the security level can be significantly improved.
The use of single sign-on (SSO) is also effective in balancing security and convenience.
By introducing SSO, users can connect to multiple systems and applications with a single authentication, reducing the risks associated with password reuse and management complexity.
Furthermore, regular review of access rights is important.
Access rights that are no longer needed may be left unattended due to employee transfers, resignations, project terminations, etc., but this can be a potential security hole.
It is important to periodically review the access rights of each user and maintain a system that grants only the minimum necessary privileges.
3-4. Building a Backup System
Building a strong backup system is an essential measure in preparation for ransomware attacks.
Applying the 3-2-1 rule is recommended as an effective backup strategy.
This is a rule that creates at least three copies of important data, stores them on two different types of media, and stores one of them off-site (in a remote location).
By adopting such redundancy measures, it is possible to build a robust data protection system against various risks such as system failures, cyber attacks, and natural disasters.
Perform regular backup tests and prepare and train so that data can be restored smoothly in an emergency.
Summary
Security risks faced by companies are increasing day by day with the promotion of DX.
By taking thorough security measures, you can minimize risks and maximize the benefits of DX.
Please contact globalsupport@jiran.com for further assistance.
