Morgan Stanley
  • Technology
  • Apr 10, 2018

Profiting from the Dark Side of Cyber?

The accelerating pace of technology is bringing new risks, and new opportunities.

Some of the high growth areas of today did not even exist, were possibly not even conceived of, 60 years ago.

With the advent of computers, followed closely by the internet and a subsequent wave of technological advancements, new sectors have been borne out of unexpected challenges and opportunities.

One such example is the cybersecurity sector.

OUR GROWING DEMAND FOR ONLINE SAFETY

The world is more connected and the benefits have been immense for communication and information sharing, not to mention the new ease of processing for banking transactions, online shopping and a raft of administrative actions that many of us now take for granted.

However, opening up those lines of communication has also opened up an opportunity for nefarious actors, fraud, hacking and cybercrime. And the progress of that dark side of innovation has evolved so rapidly that security measures, and relevant legislation, has often struggled to catch up.

The reach of need for cybersecurity is pervasive across all industries, public and private entities and consumers. Yet, despite the expanding demand for cybersecurity services and products, breaches continue to occur, and occur frequently.

Cybercrime costs the global economy over $400 billion annually, according to the Centre for Strategic and International Studies (2014).

THE OPPORTUNITY WITHIN THE RISK

As data breaches become more frequent and attract more media coverage, the need for companies to adapt to the growing risk becomes heightened.

This strong demand can create opportunities for investors.

According to a blue paper from Morgan Stanley Research Global, the cybersecurity market should continue to outpace increases in IT spending. The paper also points to figures suggesting that growth in corporate breaches is outpacing spend on security.

It’s hardly surprising that cybersecurity has been identified as the number one priority for Chief Investment Officers in numerous Morgan Stanley surveys.

 

For more information on investment opportunities in the cybersecurity sector, please contact your Morgan Stanley Financial Adviser.

 

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