88% of High-Uncertainty Firms Report Significant Cybersecurity Risks

Cybersecurity is a major concern for CFOs of middle-market firms, especially those facing high uncertainty due to fluctuating demand, supply chain disruptions, or macroeconomic volatility. These challenges create financial strain and long-term strategic setbacks.

According to a PYMNTS Intelligence report, Cybersecurity Risks Cause Middle-Market CFOs to Cancel Innovation Plans,” 88% of firm in high-uncertainty environments report significant cybersecurity risks, double the 42% of average firms. The report explores how firms are managing these risks and their impact on growth.

High Uncertainty Heightens Cyber Risks

Firms operating in uncertain environments face an amplified sense of urgency when it comes to cybersecurity. While 42% of middle-market CFOs express high levels of concern about cybersecurity risks in general, the share jumps to 88% for firms experiencing high levels of uncertainty. This disparity underscores the increased difficulty that these firms face in managing the unpredictable nature of their operational environments and the increased threat of cyberattacks.

According to the report, high-uncertainty firms are more likely to establish dedicated cybersecurity teams — 46% versus 22% for firms with lower uncertainty levels. The effects of cyber risks extend beyond internal operations: high-uncertainty firms report greater losses in revenue (38% versus 27% for average firms) and missed opportunities (44% versus 30%) due to cybersecurity breaches. This demonstrates how volatility compounds the financial and operational strains of cybersecurity threats.

Financial Strains From Cyber Risks

While addressing cybersecurity threats requires investment, middle-market firms often struggle to keep up with the financial toll. Consider 72% of firms overall are concerned about direct financial losses due to cyberattacks, a concern that becomes even more acute in high-uncertainty environments, where 88% of CFOs report such fears. The costs of mitigation efforts, such as investing in new security measures or employee training, add further financial strain. High-uncertainty firms are more likely to report both substantial mitigation costs and significant losses due to cyber incidents.

Additionally, 72% of firms across the board cite mitigation costs as a burden, with high-uncertainty firms experiencing more financial pressure. These figures highlight the disproportionate financial burden placed on firms already contending with unpredictable business conditions, further complicating their ability to allocate resources for long-term growth.

Cybersecurity Delays Advancement

Another impact of increased cybersecurity risks is the disruption of technological initiatives. Many firms are forced to delay or cancel innovation projects due to cybersecurity concerns.

The report finds that 32% of firms frequently postpone or abandon tech initiatives because of cybersecurity threats. This issue is more pronounced for firms in high-uncertainty environments, with 81% of CFOs reporting delays or cancellations of innovation efforts.

These delays can have long-term ramifications, eroding competitive advantage and hindering growth. Specifically, large firms with revenue between $400 million and $1 billion face even more severe disruptions, with 38% reporting frequent tech initiative delays.

As a result, firms in unstable environments must manage the need for stellar cybersecurity with the need for technological innovation, creating a delicate balance that can hinder their growth potential.


Apple Aims to Reach More Customers With Lower-Cost iPhone 16e

iPhone 16e, Apple

Apple debuted its lower-cost smartphone, the iPhone 16e, Wednesday (Feb. 19), saying the product’s price starts at $599.

“We’re so excited for iPhone 16e to complete the lineup as a powerful, more affordable option to bring the iPhone experience to even more people,” Kaiann Drance, vice president of worldwide iPhone product marketing at Apple, said in a Wednesday press release.

The new model joins a smartphone lineup that includes the iPhone 15 starting at $699, the iPhone 16 starting at $799 and the iPhone 16 Pro starting at $999, according to the Apple website.

The iPhone 16e is “built for Apple Intelligence,” the company’s artificial intelligence (AI) offering, according to the release.

The smartphone also offers Apple’s A18 chip, the Apple C1 cellular modem, a 48MP Fusion camera system and a 6.1-inch display, the release said.

The Big Tech firm will accept pre-orders for the iPhone 16e in 59 countries and regions beginning Friday (Feb. 21) and will make the phone available beginning Feb. 28, per the release.

The new smartphone will cost $170 more than the iPhone SE that it replaces, Bloomberg reported Wednesday.

It also marks the biggest change in the history of the low-end iPhones that were introduced in 2016 and have not been updated in nearly three years, according to the report.

The company reported in January that during the fourth quarter — the first quarter in which it offered the iPhone 16 and Apple Intelligence — the iPhone 16 models performed stronger in markets where the AI features were available.

Apple reported a record number of iPhone upgraders during the quarter, with the iPhone 16 family outperforming the iPhone 15 family since launch. During a January earnings call, Apple CEO Tim Cook attributed this trend to a strong desire among existing customers to adopt the latest technology, with Apple Intelligence being a key factor.

The company’s installed base of active devices reached a record high of 2.35 billion during the quarter.

When Apple unveiled Apple Intelligence in September, it said the suite of AI-powered features integrates deeply into the company’s ecosystem, leveraging the technology to perform tasks ranging from text refinement to image manipulation, all while prioritizing user privacy.