November 5, 2013 - More than half (52%) of Australian and New Zealand organisations have plans to capitalise on the increase of connected devices known as the "Internet of Things." And, 47% have already been impacted by such technology, according to the IT professionals surveyed in ISACA's 2013 IT Risk/Reward Barometer.
Furthermore, just over one-third (36%) of the IT professionals surveyed indicated their enterprises have already achieved greater accessibility to information due to the Internet of Things, 31% have experienced improved services and 20% have achieved greater efficiency, lower costs and increased customer satisfaction.
Conducted by ISACA, a global association of 110,000 IT security, assurance, governance and risk professionals, the IT Risk/Reward Barometer asked 2,013 IT professionals who are members of ISACA about the risks and rewards of key trends, including the Internet of Things.
The term "Internet of Things" refers to machines, devices, sensors, cars, cameras and other items that are connected to the Internet and often to each other. Fifty billion devices are expected to be connected to the Internet by 2020.*
While respondents from Australia and New Zealand identified significant benefits from the Internet of Things, the risks involved with greater connectivity were also recognised, with increased security threats being the biggest governance concern to 28% of IT professionals. Data privacy was highlighted by 27%, followed by concerns around identity and access, which are most troubling to 17% of respondents.
"There are numerous benefits to greater connectivity, but organisations need to be aware of the increased risks that come with the Internet of Things. We're already seeing a distinct rise in cyber-attacks and threats across the board – from accounts being hacked and credit card details stolen to remote entry being manipulated," said Jo Stewart-Rattray, CISA, CISM, CGEIT, CRISC, FACS CP, Director of Information Security and IT Assurance at BRM Holdich and International Director of ISACA. "Both public and private organisations need to ensure their systems are adequately protected and that they are prepared to deal with the inevitable increase in malicious attacks."
When asked about the risk and rewards of the Internet of Things for enterprises, the majority of respondents (45%) believe the benefits outweigh the risks. A further 31% believe the risks and benefits are equally balanced and one-quarter think the risks outweigh the benefits. More than half (53%) believe greater internet connectivity is of more benefit than risk to consumers, though respondents do recognise some risk to consumers—particularly not knowing who has access to all the information being collected (38%) and not knowing how it is being used (38%).
"The Internet of Things is only set to grow over the coming years, and organisations need to develop proactive strategies to ensure they benefit from the increase in connected devices," added Tony Hayes, CGEIT, AFCHSE, CHE, FACS, FCPA, FIIA, International President of ISACA. "However, increased connectivity also opens up a number of security risks, both externally and internally. Organisations need to determine how they will protect the data shared by their devices, while also measuring and communicating the benefits of increased connectivity."
5 Steps to Being Agile in a Connected World
ISACA recommends five steps enterprises can take to be agile in the Internet of Things era:
1. Act quickly; enterprises cannot afford to be reactive.
2. Govern the initiative to ensure that data remain secure and risks are managed.
3. Identify expected benefits and how to measure them.
4. Leverage internal technology steering committee to communicate benefits to the board.
5. Embrace creativity and encourage innovation.
2013 IT Risk/Reward Barometer
The annual IT Risk/Reward Barometer is a global indicator of trust in information. Conducted by ISACA, a global association of 110,000 IT security, assurance, risk and governance professionals, the Barometer polls thousands of business and IT professionals and consumers worldwide to uncover attitudes and behaviours about essential technologies and information, and the trade-offs people make to balance risk and reward. The study is based on September 2013 online polling of 2,013 ISACA members from 110 countries. Sixty-four Australian and New Zealand IT professionals contributed to the survey. Additional online surveys were fielded by M/A/R/C Research among 1,216 consumers in the US, 1,001 consumers in India, and 1,001 consumers in Mexico. The US survey ran 16–18 September 2013, and the India and Mexico surveys ran 25 September–5 October 2013. At a 90% confidence level, the margin of error for each country sample is +/- 2.8 percent. A UK survey of 1,000 consumers was conducted by OnePoll on 2 October 2013 with a margin of error of +/- 3.9 percentage points at the 95% confidence level.
*Source: Cisco
