Given the level of digitalisation in our business and private lives, cybersecurity has become important to us all. The EU and the Luxembourg government have issued cybersecurity guidelines and strategies aimed at protecting us against cyber-attacks, as well as educating the general public to make them aware of possible threats. Indeed, as reported in Delano this week, we also need to take responsibility for our own data protection.

In a Q&A with Delano, Cédric Mauny of Telindus describes how far Luxembourg has come in terms of cybersecurity.

Delano: How important is cybersecurity to companies in Luxembourg?

Cédric Mauny: Successful digitalisation cannot be performed without cybersecurity at its core. It is impossible to digitalise business activities without considering the protection of client and company data.

Some attacks, like ransomware, have a real impact on operations and business activities, as well as on the reputation of targeted companies. Hence, over the last few years, cybersecurity has become the main concern for most companies, especially in Luxembourg.

Delano: Why “especially Luxembourg”?

CM: Estonia decided to open the world’s first data embassy in Luxembourg, which should become operational early 2018. Last January, the European Commission proposed setting up the headquarters of the EuroHPC in the grand duchy and Luxembourg is also a precursor with the electronic archiving bill, which recognises the probative value of electronic copies of documents. These announcements prove that Luxembourg is a digital heavy weight in Europe and worldwide.

In addition, given that the financial sector plays an important role in the Luxembourg economy, sensitive and confidential data must be protected, therefore cybersecurity is critical to foster trust. Luxembourg’s fintech market is well developed and continues to grow, and the regtech area is increasing thanks to the country’s considerable experience in dealing with regulation.

Luxembourg’s cybersecurity ecosystem is very strong, established for more than 15 years already and still one of the most active in Europe.

Cybersecurity is no longer a topic for geeks. There has been a paradigm shift, meaning that information security and cybersecurity are now considered corporate risks and therefore tackled at the board of directors’ level, along with financial, reputational and operational risks.

A recent insurance study, the Allianz Risk Barometer 2018, reveals that cyber incidents (e.g., cybercrime, IT failure, data breaches) are the second most important business risks in 2018, ranked second just below business interruption (supply chain disruption, for example), but far above natural disasters.

Taking of this into account, it is clear that the success of the digital transformation of companies in Luxembourg is closely linked to the cybersecurity. With all its assets, Luxembourg is correct that it has the ambition to be a leader in the cybersecurity field.