How can cybersecurity sow the seeds for competitive business growth?

Companies in the forestry industry must focus their efforts on five key cybersecurity priorities to stay successful in 2023 and beyond.

In brief:

• From a highly distributed nature to third-party risks, many factors pose significant challenges to the cybersecurity blueprint of the forestry industry.
• Keeping on top of the growing challenges in the digital era, forestry companies must prime their organization for resilience and success.

In an era where the forestry industry is continuing its shift toward new businesses and business models, it's crucial to recognize that digital transformation and external forces bring with it a new set of cybersecurity challenges. Anchored in the world of connectivity, data analytics and emerging technologies, forestry companies must be prepared to defend against a range of threats. With reputational damage and legal ramifications also at stake, proactive cybersecurity measures are no longer optional — they are imperative.

This article delves into the cybersecurity challenges faced by the forestry industry, explores the potential consequences of cybersecurity incidents and outlines key cybersecurity priorities for 2023 and beyond.

Unique cybersecurity challenges and implications for the forestry industry

The forestry industry faces distinctive cybersecurity challenges with threat actors that may have varying objectives, requiring a dynamic incident response approach. Consequences of a breach include the loss or slowdown of operational capabilities, erosion of brand value and trust, temporary impacts on market trust and stock prices, loss of intellectual property, incorrect production processes, and, most critically, the endangerment of human lives and the environment. 

What makes cyber challenges complex for the forestry industry? Here are a few reasons:

Industry perception vs. reality: One of the primary challenges is the discrepancy between how the forestry industry is perceived and its evolving digital reality. It's increasingly reliant on digital technology to enhance operational efficiency and speed-to-market. However, achieving security by design is crucial to unlock its full potential, as later-stage controls can limit its capabilities.

Formation complexity: Over time, the industry has grown through mergers and geographical expansions, resulting in varying degrees of autonomy across countries, divisions and functions. While autonomy can support operations, it poses security challenges due to imbalances between centralization and autonomy, leading to unidentified threats, differing practices and incompatible technologies.

Ecosystem trust and partnership: A visible challenge in the forestry sector is the high level of trust in key vendors, especially in the production domain. Historically, security was not a focal point, with more emphasis on brands. However, the industry's evolving landscape necessitates continuous dialogue and genuine partnerships to address responsibilities, expectations and potential gaps.

Cloudification transformation: The shift towards cloudification in the industry transforms the security paradigm. Physical boundaries no longer exist, opening new transformation opportunities. However, this shift requires a reform of security thinking. While companies may lose some control, they can gain capabilities that were once considered costly or unattainable, addressing emerging risks effectively.

Regulatory frameworks and standards: Forestry companies are often classified as national critical assets, leading to increased emphasis on security requirements and expectations due to the forthcoming NIS2 directive in Europe. Being a certified secure company doesn't equate to readiness; misconceptions similar to those observed during General Data Protection Regulation (GDPR) discussions can arise. It's also essential to recognize that cybersecurity and privacy are integral aspects of Environmental, Social and Governance (ESG) legislation.

Remote implementation: Implementing cybersecurity measures in remote locations, given the industry's distributed nature, presents unique challenges. These include:

• Leadership alignment: Aligning cybersecurity with business objectives is crucial. It must go beyond viewing cybersecurity as a static IT extension, ensuring alignment of business and security understanding, risk visibility and enterprise-wide activities.
• Centralization vs. empowerment: While some centralization is necessary, empowering individual business areas is equally important. Each specific area should have its security responsible, similar to the business information security officers (BISOs) in the banking sector. They understand the business's unique context and "speak cyber."
• Technical deployment challenges: Although companies may possess robust security capabilities, remote areas, other countries, or highly autonomous divisions may not have them fully implemented. This can result in potential threats, overspending, confusion over shared responsibilities and a lack of visibility into cybersecurity efficiency, leading to increased cybersecurity debt and higher future costs.

Addressing these unique challenges is vital for the forestry industry to protect its digital transformation, mitigate consequences and ensure effective cybersecurity, particularly in remote and distributed operations.

Forestry cybersecurity priorities for 2023 and beyond

The forestry industry faces distinct cybersecurity challenges that necessitate a strategic approach. Looking ahead to 2023 and beyond, here are the top five cybersecurity priorities:

1. Elevating organizational cyber awareness: Forestry companies must recognize that cybersecurity is not limited to IT; it's an integral part of the entire organization. Focusing solely on IT diminishes the return on investment and limits support for broader organizational activities. Making cybersecurity an organizational agenda is paramount.
2. Long-term strategy over quick fixes: Rather than seeking immediate cybersecurity solutions, forestry companies should adopt a holistic, long-term strategy. Continuous end-to-end monitoring extending beyond technology provides insights into genuine needs and how to seamlessly integrate cybersecurity into all organizational activities.
3. Securing digital transformation: With the industry's digitalization extending beyond office boundaries, it's crucial to design devices, solutions and capabilities with security in mind. These elements should be patchable, and roles and responsibilities for ongoing security maintenance must be crystal clear.
4. Cybersecurity integration in organizational changes: Whether triggered by strategic shifts or mergers and acquisitions, cybersecurity should be an integral part of transformations. It should be strategically, tactically and operationally planned to avoid last-minute, costly integrations. Amid tight budgets, a comprehensive view of cybersecurity costs is essential, encompassing various corporate initiatives that might extend beyond the traditional scope of the CISO's office. Given the rapidly changing risk landscape, vigilant monitoring is necessary to mitigate potential overlapping expenses.
5. Cost-effective cybersecurity management: As budgets remain constrained, it's essential to monitor cybersecurity costs diligently and evaluate spending carefully. Often, customers fail to identify the total costs of cybersecurity, as multiple initiatives across the organization operate separately. In addition to the CISO's office, transformational and development programs, which should be closely aligned with cybersecurity, might operate outside of visibility. This dynamic risk landscape necessitates a holistic view of spending and risk management.

How EY teams strengthen cybersecurity for forestry companies

Amid economic uncertainties, enhancing cybersecurity need not be a costly endeavor. EY teams provide broad support for organizations across various stages of transformation and development. The cybersecurity professionals cover traditional areas like identity and access management, security testing, assessments and cyber risk management. What sets us apart is our ability to effectively communicate with all levels of an organization, from boards and executive leadership to deep technical operations.

The EY approach often begins by gaining a deep understanding of your organization's direction. We align cybersecurity objectives, expectations, investments and needs to suit your unique journey. Collaborating with clients, we identify opportunities to streamline cybersecurity practices, optimize the use of existing technology and uncover untapped potential in partner responsibilities. These efforts not only strike a balance between cost and benefit but also significantly bolster your cybersecurity posture.