Human Risk Management Institute

Why Digital Growth Increases Security Risks for Businesses

Written by Nur Rachmi Latifa | 03 Feb 2026

Digital growth has become a core driver of business success, enabling companies to scale faster, reach wider markets, and operate more efficiently in an increasingly connected economy. However, behind this rapid expansion lies a growing challenge that many businesses underestimate: security risk. As organizations adopt cloud platforms, digital ecosystems, and data-driven operations, their exposure to cyber threats, data breaches, and human-related vulnerabilities also increases. Understanding how digital growth reshapes the risk landscape is essential for businesses that want to innovate confidently, protect trust, and ensure long-term sustainability in the digital economy.

The Relationship Between Digital Growth and Security Risk

Digital growth has reshaped how modern businesses operate, pushing organizations to adopt cloud computing, mobile platforms, e-commerce, and data-driven systems to stay competitive. This shift brings clear advantages—greater efficiency, wider market access, and improved customer experience but it also fundamentally changes the risk landscape. As highlighted in the journal “Information Security Management Practices in the Digital Economy” by Zaini et al. (2025), the rapid expansion of digital technologies increases organizational dependence on interconnected systems, making businesses more exposed to security threats than ever before.

At the same time, the study emphasizes that security risk grows in parallel with digital expansion. Technologies that enable speed and innovation also introduce new vulnerabilities, from cyberattacks and data breaches to ransomware and digital fraud. The research shows a clear pattern: the faster a business grows digitally, the larger and more complex its attack surface becomes. This happens because digital transformation turns physical processes into digital ones, connects internal systems to external networks, and enables sensitive data to flow continuously across platforms, devices, and third parties—often faster than security practices can adapt. According to findings discussed by Zaini et al. (2025), digital growth introduces three major structural shifts that elevate security risk for businesses:

  1. Increased dependence on digital infrastructure, where system availability and reliability become critical to daily operations
  2. Greater exposure to cyber threats, as interconnected systems create more entry points for attackers
  3. Higher reliance on human behavior within digital systems, increasing the impact of errors, negligence, or social engineering

Each of these factors amplifies vulnerabilities if information security management does not evolve at the same pace as digital transformation, turning security from a purely technical issue into a strategic business concern.

Read: What Happens If a Company Has No Data Protection Officer?

Expanding Digital Infrastructure Increases the Attack Surface

One of the most direct consequences of digital growth is the rapid expansion of IT infrastructure. To support scalability and innovation, businesses increasingly rely on cloud services, mobile devices, remote access systems, Internet of Things (IoT) technologies, and tightly integrated digital platforms. These technologies enable faster operations and real-time connectivity, but they also significantly widen the organization’s digital footprint.

As explained in Zaini et al. (2025), the widespread connection of systems and devices within digital ecosystems increases the overall attack surface of businesses. Every new system, device, application, or interface becomes a potential entry point for attackers. When millions of devices are connected across national and organizational digital ecosystems, securing business environments becomes far more complex, especially if security controls are not designed holistically. For businesses, this expansion means:

  • More systems to secure, including cloud platforms, endpoints, and third-party services
  • More configurations to manage, increasing the likelihood of inconsistent or weak security settings
  • More opportunities for misconfiguration or oversight, which attackers often exploit

Without strong security governance and risk-based oversight, digital growth can quickly outpace an organization’s ability to protect its assets, turning infrastructure expansion into a significant and often underestimated security risk.

Rising Cyber Threats Follow Digital Business Expansion

Cyber threat activity consistently rises in environments experiencing rapid digital growth. As businesses digitize operations, customer interactions, and data management, cybercriminals naturally follow where value is being created. The research by Zaini et al. (2025) highlights that digitally mature economies tend to experience higher volumes of ransomware, malware attacks, phishing campaigns, and data breaches as digital adoption accelerates.

These threats are no longer limited to large enterprises with complex infrastructures. Small and medium-sized businesses are increasingly targeted because they often lack mature security controls, dedicated security teams, or structured risk management practices. As digital business models scale, the financial and operational impact of cyber threats becomes more severe and harder to contain. The consequences for businesses can include:

  • Direct financial losses from fraud, ransom payments, or system recovery
  • Business interruption that disrupts operations and customer services
  • Regulatory penalties due to non-compliance with data protection requirements
  • Long-term reputational damage that erodes brand credibility
  • Loss of customer trust, which is difficult to rebuild once compromised

Digital growth makes businesses more visible, more data-rich, and therefore more attractive targets for cybercriminals.

Data as a Core Business Asset and a Major Liability

Digital growth transforms data into one of the most valuable assets for modern businesses. Customer information, financial records, intellectual property, and operational insights drive decision-making, innovation, and competitive advantage. As organizations scale digitally, data becomes deeply embedded in nearly every business process.

However, Zaini et al. (2025) emphasize that data concentration also significantly increases security risk. Data security and privacy are identified as some of the most critical challenges in the digital economy, particularly as businesses collect, store, and share data across multiple platforms and partners. Key risk factors associated with data-driven digital growth include:

  • Large volumes of sensitive data stored digitally, increasing breach impact
  • Increased data sharing across platforms and partners, expanding exposure
  • Regulatory requirements for data protection, raising compliance pressure
  • Rising costs associated with data breaches, both direct and indirect

When digital growth moves faster than data protection strategies, businesses face heightened legal, financial, and reputational consequences that can undermine long-term growth.

Human Factors Amplify Security Risks in Digital Businesses

One of the most important insights from digital security research is that cybersecurity is not purely a technical challenge, it is also a human one. Zaini et al. (2025) highlight that human behavior plays a central role in shaping security outcomes within digitally growing organizations. As businesses expand digitally:

  • Employees interact more frequently with digital systems
  • Decision-making becomes faster and more decentralized
  • Remote and mobile work increase dependency on individual behavior

Cybercriminals actively exploit these conditions through phishing, social engineering, and psychological manipulation. Many ransomware attacks, business email compromise cases, and identity fraud incidents succeed not because systems fail, but because people are pressured into making quick or uninformed decisions. Digital growth further amplifies this risk by increasing:

  • The number of users with system access
  • The speed at which employees must act
  • The volume of digital interactions requiring judgment

Without strong security awareness and behavioral controls, digital expansion magnifies human-related security risks across the organization.

Third-Party and Supply Chain Risks in Digital Ecosystems

Modern digital businesses rarely operate in isolation. Digital growth increasingly depends on complex ecosystems involving cloud providers, software vendors, logistics partners, payment processors, and outsourced service providers. According to Zaini et al. (2025), supplier and third-party relationships introduce significant security risks if not governed properly.

A single security failure within the supply chain can cascade across interconnected systems and compromise the entire business ecosystem. As reliance on external platforms grows, so does the challenge of maintaining consistent security standards. Common third-party and supply chain risks include:

  • Weak security controls at vendor organizations
  • Insecure data sharing arrangements
  • Lack of visibility into third-party security practices
  • Dependency on external systems for core operations

As digital ecosystems expand, businesses must extend security governance beyond internal systems to include suppliers, partners, and service providers.

Insecure Internet Environments and Borderless Threats

The digital economy operates on a global, borderless internet infrastructure. While this enables businesses to scale internationally, it also removes traditional geographic boundaries for cybercrime. Zaini et al. (2025) note that internet insecurity increases the speed, scale, and anonymity of cyber threats. Cybercriminals can launch attacks from anywhere in the world, targeting businesses regardless of size or location. This creates a threat environment that is continuous and difficult to predict. For businesses, this reality means:

  • Threats are constant and global
  • Traditional perimeter-based security is insufficient
  • Detection and response must be continuous

Digital growth exposes businesses to a threat landscape that is far more dynamic and unpredictable than in traditional operating environments.

Why Security Often Lags Behind Digital Growth

Despite the rising security risks, many businesses still prioritize digital transformation over security investment. Zaini et al. (2025) identify several recurring reasons why security often lags behind digital growth. Common factors include:

  • Focus on speed-to-market and innovation
  • Perception of security as a cost rather than a value driver
  • Lack of executive-level security governance
  • Underestimation of human and operational risks

This imbalance creates security gaps that attackers exploit. When digital growth is not matched with proportional investment in security practices, risk accumulates silently until a major incident forces attention.

The Business Case for Risk-Based Security in Digital Growth

Effective security in the digital economy requires a risk-based approach rather than reactive or purely technical controls. Zaini et al. (2025) emphasize the importance of aligning security management with business objectives through structured governance and layered defenses. Key components of a risk-based security approach include:

  • Administrative security (policies, governance, awareness)
  • Technical security (access controls, encryption, system protection)
  • Physical and environmental security (secure facilities and equipment)

Together, these practices help businesses reduce risk while continuing to grow digitally in a controlled and sustainable manner.

Security as a Trust Enabler for Digital Business

Trust is a foundational element of the digital economy. Customers, partners, and regulators expect businesses to protect data, systems, and transactions. Zaini et al. (2025) confirm that strong information security practices directly support trust in digital business environments. When businesses demonstrate robust security:

  • Customers are more willing to share data
  • Partners are more confident in collaboration
  • Organizations are better positioned to comply with regulations

In this sense, security is not a barrier to digital growth—it is a prerequisite for sustainable, trusted, and resilient digital expansion.

Read: How SiberMate Helps Companies Manage Human Cyber Risk

Conclusion

Digital growth is no longer optional for modern businesses, but it comes with an unavoidable increase in security risk. As infrastructure expands, data becomes more concentrated, cyber threats grow more sophisticated, and human involvement in digital systems intensifies, the overall risk landscape becomes more complex. Businesses that fail to embed security into their digital growth strategy expose themselves to operational disruption, financial loss, and long-term reputational damage. To grow sustainably in the digital economy, organizations must treat security as a strategic business priority, address human and technological risks together, and adopt a proactive, risk-based approach that strengthens trust while enabling innovation and long-term resilience.