AUSTRALIA ENCRYPTION TRENDS STUDY - 2021 Find out how organisations are protecting data across multiple clouds, and how your encryption strategy ...

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AUSTRALIA ENCRYPTION TRENDS STUDY - 2021 Find out how organisations are protecting data across multiple clouds, and how your encryption strategy ...
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2021
AUSTRALIA ENCRYPTION
TRENDS STUDY
Find out how organisations are protecting data across
multiple clouds, and how your encryption strategy compares.
PONEMON INSTITUTE PRESENTS THE FINDINGS OF THE
2021 AUSTRALIA ENCRYPTION TRENDS STUDY1

We surveyed 317 individuals in Australia to                                           Fifty-four percent of respondents say their
examine the use of encryption and the impact                                          organisations have an overall encryption
of this technology on the security posture of                                         strategy that is applied consistently across
organisations in this region. Globally, 6,457                                         the entire enterprise and 36 percent of
individuals across multiple industry sectors in                                       organisations have a limited encryption plan
17 countries and regions were surveyed. The                                           or strategy.
research includes: Australia, Brazil, France,
Germany, Hong Kong, Japan, Mexico, Middle                                             Following are the findings from this year’s
East (which is a combination of respondents                                           research.
located in Saudi Arabia and the United
Arab Emirates), Netherlands, the Russian
Federation, Southeast Asia, South Korea,
Spain, Sweden, Taiwan, the United Kingdom
and the United States.2

     Moving ahead
     Organisations in Australia have adopted enterprise-wide
     encryption strategies faster than global averages

                          60%
                                                                                                                        54%

                          50%
                                       41%                                                                              50%
                          40%

                          30%
                                       32%
                          20%

                           10%
                                                                                                                                                Australia
                           0%                                                                                                                   Global
                                        2017                2018               2019                2020                 2021

1
    This year’s data collection was started in December 2020 and completed in January 2021. Throughout the report we present trend data based on the fiscal year
    the survey commenced rather than the year the report is finalized. Hence, we present the current findings as fiscal year 2020.
2
    Country-level results are abbreviated as follows: Australia (AU), Brazil (BZ), France (FR), Germany (DE), Hong Kong (HK), Japan (JP), Korea (KO), Mexico (MX),
    Middle East (AB), Netherlands (NL), Russia (RF), Spain (SP), Southeast Asia (SA), Sweden (SW), Taiwan (TW), United Kingdom (UK), and United States (US).

                                                                                                      PONEMON INSTITUTE © RESEARCH REPORT                            2
STRATEGY AND ADOPTION
                                                                        Mistake or malice: The results are the same
OF ENCRYPTION                                                           Top 5 threats to sensitive data

IT operations has the most influence in                                  Employee mistakes                         64% Highest rate
                                                                                                 X                     worldwide
directing encryption strategies. While
responsibility for the encryption strategy is                              System or process
                                                                                                             40%
                                                                                 malfunction
dispersed throughout the organisation, IT
operations (33 percent of respondents) has the                                   Third party           21%
                                                                           service providers
most influence. Fifteen percent of respondents
say no one single function is responsible for                                                              Highest rate
                                                                         Lawful data request           20% worldwide
encryption strategy.

                                                                            Malicious insiders       17%
Which data types are most often encrypted?
Sixty-two percent of respondents say their
organisations are encrypting intellectual                            This is followed by system or process
property, 60 percent of respondents say                              malfunction (40 percent of respondents).
employee/HR data and payment-related data                            Twenty percent of respondents rate lawful
is encrypted. Less than a third (30 percent) of                      data requests as a threat, which is tied for
respondents say their organisations encrypt                          the highest region.
healthcare information.
                                                                     Protecting information against specific
THREATS, MAIN DRIVERS                                                identified threats is the main driver for the
AND PRIORITIES                                                       use of encryption. Sixty-three percent of
                                                                     respondents say they encrypt to protect
Negligent insiders pose the greatest threat to
                                                                     information against specific, identified threats
sensitive data. The most significant threats to
                                                                     and 52 percent of respondents say compliance
the exposure of sensitive or confidential data
                                                                     with external privacy or data security
are employee mistakes, according to 64 percent
                                                                     regulations and requirements is the reason to
of respondents (the highest rate worldwide).
                                                                     encrypt sensitive and confidential data.

    Do your priorities match your promises?
    Top 6 types of data that organisations encrypt in Australia

        62%                 60%                  60%
                                    53%                                 55%     55%              54%
                 48%                                    48%
                                                                                                         42%
                                                                                                                          30%
                                                                                                                                24%

         Intellectual        Payment-            Employee/                Financial               Customer                 Healthcare
          property          related data          HR data                  records               information              information

                                                         Australia     Global

3      PONEMON INSTITUTE © RESEARCH REPORT
Forty-three percent say they encrypt data to                       Certain encryption features are considered
comply with internal policies, the highest                         more critical than others. Respondents
rate worldwide.                                                    were asked to rate encryption technology
                                                                   features considered most important to their
  Encryption strategy is increasingly                              organisation’s security posture. Eighty-
  data-driven                                                      three percent of respondents (the highest
  Top 5 drivers for using encryption
                                                                   rate worldwide) say support for emerging
                                 Highest rate worldwide
      To protect information
                                                                   algorithms (e.g. ECC) and 85 percent of
            against specific,        up 13% from last year   63%
           identified threats                                      respondents say separation of duties and
     To comply with external                                       role-based controls are critical features in
     privacy or data security                          52%
 regulations and requirement                                       encryption technology solutions.
                                 Highest rate worldwide
             To comply with
            internal policies                    43%
                                                                      The Australian approach
        To protect enterprise                                         As encryption use grows, Australia shows a
         intellectual property                  42%
                                                                      stronger preference than other regions for
                                                                      encryption solutions with these specific features
        To reduce the scope
        of compliance audits                  40%

                                                                                        Highest                  Australia
                                                                                          rate
                                                                                       worldwide                 Global
                                                                        85%              83%
Discovering where sensitive data resides in                                                                70%
                                                                               57%                 57%             56%
the organisation continues to be the biggest
challenge. Fifty-nine percent of respondents
say their organisations consider discovering
                                                                       Separation of      Support for       System
where sensitive data resides as the biggest                             duties and         emerging        scalability
                                                                        role-based        algorithms
challenge when planning and executing a data                             controls

protection strategy. Half of respondents say
initially deploying the encryption technology is
one of their biggest challenges.                                   ATTITUDES ABOUT KEY
                                                                   MANAGEMENT

DEPLOYMENT CHOICES                                                 How painful is key management? Fifty-nine
                                                                   percent of respondents rate key management
No single encryption technology dominates                          as very painful, which suggests respondents
because organisations have very diverse                            view managing keys as a very challenging
needs. Encryption of Internet communications                       activity. The top reasons are: lack of skilled
(e.g. TLS/SSL) and laptop and hard drives                          personnel (60 percent of respondents),
are most likely to be extensively deployed                         inadequacy of key management tools
(62 percent and 54 percent of respondents,                         (55 percent of respondents) and no clear
respectively). Internet of Things (IoT)                            ownership (49 percent of respondents).
platforms/data repositories and IoT devices are
at least partially deployed, each at 60 percent
of respondents.

                                                                              PONEMON INSTITUTE © RESEARCH REPORT            4
Fifty-four percent respondents say their
    Key management is a people problem                        organisations plan to use blockchain. The two
    For the 4th straight year, a lack of skilled
    personnel is the top reason why key                       primary use cases will be cryptocurrency/
    management is painful
                                                              wallets and asset transactions/management,
                                                              each at 59 percent of respondents.

                                                               The business case for blockchain
        60%                    55%                49%          Average timeframe for planned use of blockchain
     Lack of skilled    Key management             No clear    is 3 years from now vs. global average of 2.5 years
       personnel            tools are             ownership
                           inadequate
                                                                                  Asset transactions management

                                                                                  59%
Which keys are most difficult to manage?                                          Cryptocurrency wallets
The most difficult keys to manage are keys for
external cloud or hosted services, including
                                                                                  59%
BYOK keys (82 percent of respondents,                                             Smart contracts

which is the highest rate worldwide), SSH                                         44%
keys and signing keys (each at 51 percent of
                                                                                  Supply chain
respondents). Least painful to manage are
keys to embed into devices (e.g. at the time of                                   40%
manufacture in device production environments                                     Identity
or for IoT devices used), according to 20
percent of respondents.
                                                                                  38%
                                                              Multi-party computation will reach mainstream
    Juggling is struggling                                    enterprise adoption much sooner than
    Australia rates the pain associated with                  quantum algorithms. Respondents were
    managing several types of encryption keys
    higher than global averages, including:                   asked to estimate how long it will take before

     Keys for external cloud
                                                              quantum algorithms, homomorphic encryption
         or hosted services    Highest rate worldwide   82%
       including Bring Your
                                                              and multi-party computation to be adopted.
                                               58%
           Own Key (BYOK)
                                                              While it is estimated that quantum algorithms
             Key associated                50%
              with SSL/TLS                                    will be adopted in an average of seven years,
                                        41%
                                                              multi-party computation will be adopted in an
                                           48%
     Payments-related keys
                                    35%                       average of nearly five and a half years.

        Encryption keys for          38%
       backups and storage        29%                         IMPORTANCE OF HARDWARE
                               Australia      Global          SECURITY MODULES (HSMs)
                                                              HSMs are very important to organisations’
Cryptocurrency/wallets and asset                              encryption or key management strategy.
transactions/management are the applications                  Eighty-eight percent of respondents are
organisations plan to use blockchain for.                     knowledgeable about HSMs.

5      PONEMON INSTITUTE © RESEARCH REPORT
We asked respondents who are in organisations                currently transfer sensitive or confidential data
that currently deploy HSMs (42 percent of                    to the cloud (whether or not it is encrypted or
respondents) how important they are to their                 made unreadable via some other mechanism)
encryption or key management strategy.                       and 31 percent of respondents plan to in the
Seventy-three percent of respondents say                     next 12 to 24 months.
they are important today and 83 percent of
respondents say will be important in the next                How do organisations protect data at rest in
12 months.                                                   the cloud? Forty percent of respondents say
                                                             encryption is performed on-premises prior
How organisations are using HSMs. Fifty-                     to sending data to the cloud using keys the
eight percent of respondents say they have a                 organisation generates and manages. Twenty-
centralized team that provides cryptography                  eight percent of respondents say encryption is
as a service and 42 percent of respondents                   performed in the cloud using keys generated/
say each individual application owner/team                   managed by the cloud provider. Twenty-four
is responsible for their own cryptographic                   percent of respondents are using some form of
services. Today, 67 percent of respondents                   Bring Your Own Key (BYOK) approach.
use HSMs for TLS/SSL including firewalls, and
application delivery controllers. In 12 months, 67             Who holds the keys?
                                                               When encrypting data-at-rest in the cloud,
percent of respondents say their organisations                 64% of organisations prefer to control the
will be using payment transaction processing or                encryption keys vs. 59% globally

payment credential issuing/provisioning.                                                         40%
                                                                                                              38%

   The path is clear                                                 24%
                                                                                  21%
   How organisations plan to increase HSM
   deployment in the next 12 months

     Payment transaction                                           Encryption performed in     Encryption performed
   processing or payment     up 34% from               67%
                             last year                            the cloud using keys their    on-premises prior to
        credential issuing                                       organisation generates and     sending data to the
                                                                    manages on-premises        cloud using keys their
                                                                                               organisation generates
          With Secrets       up 22% from                                                           and manages
                                                 38%
   Management solutions      last year
                                                                                   Australia   Global

            Code signing     up 24% from
                             last year           35%

                                                             What are the top three encryption features
                             up 10% from
     Database encryption     last year       31%
                                                             specifically for the cloud? The top three

                             up 15%
                                                             features are granular access controls
        Key management                     23%
                             from last
             root of trust   year                            (67 percent of respondents), support for
                                                             the KMIP standard for key management
CLOUD ENCRYPTION                                             (65 percent of respondents), and Bring Your
                                                             Own Key management support (59 percent
Almost half of organisations transfer sensitive              of respondents).
or confidential data to the cloud. Forty-nine
percent of respondents say their organisations

                                                                        PONEMON INSTITUTE © RESEARCH REPORT             6
ABOUT PONEMON INSTITUTE
                                The Ponemon Institute© is dedicated to advancing responsible
                                information and privacy management practices in business and
                                government. To achieve this objective, the Institute conducts
                                independent research, educates leaders from the private and
                                public sectors, and verifies the privacy and data protection
                                practices of organisations in a variety of industries.

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                                crossing borders, making a purchase, accessing e-government
                                services, or logging into corporate networks. Entrust offers an
                                unmatched breadth of digital security and credential issuance
                                solutions at the very heart of all these interactions. With more
                                than 2,500 colleagues, a network of global partners, and
                                customers in over 150 countries, it’s no wonder the world’s
                                most entrusted organisations trust us. For more information,
                                visit entrust.com

7   PONEMON INSTITUTE © RESEARCH REPORT
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     in the U.S. and/or other countries. All other brand or product names are the property of their respective owners.
             © 2021 Entrust Corporation. All rights reserved. HS22Q1-2021-australia-encryption-trends-study-re

                                                                           PONEMON INSTITUTE © RESEARCH REPORT              8
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