The Future Ahead: Evolving Cyber Security Priorities
The future ahead: Evolvingcyber security priorities in IndiaAugust 2021
PrefaceDear reader,It is our pleasure to bring to you our thought leadership report, ‘The future ahead: Evolving cyber security priorities in India’, which is acontinuation of our ‘Cyber security: India market’ report. Launched in December 2019 during the Annual Information Security Summit(AISS), the previous report offered insights into the growth in domestic demand for cyber security in India. With the latest report, we haveattempted to gauge how cyber security priorities are evolving during and post the pandemic.The cyber security ecosystem is at a critical point. The increasing number and complexity of cyberattacks, coupled with rapid digitisationdriven by the pandemic, have emphasised the importance of cyber security in businesses of all sectors and sizes. To find out what’s next incyber security, we conducted a study with over 100 business and technology executives in India.Based on our study, this paper highlights the key trends for the future of business, the evolving cyber security priorities and the various ways of optimising the cyber security function. Inaddition, it underlines the shift of focus towards digitisation, increasing significance of business resiliency, rapid adoption of cloud computing, localisation of supply chain ecosystems, andthe need for optimised allocation of resources.We hope you will find this report to be an insightful read.Rama VedashreeSivarama KrishnanSiddharth VishwanathCEO, Data SecurityCouncil of IndiaPartner and Leader, APAC Cyberand India Risk Consulting, PwCPartner and Leader, CyberSecurity, PwC India2
Table of contents123IntroductionFuture of business and theevolving threat landscapeChanging cyber securitypriorities456Dichotomy betweenenhanced securityand optimisationOptimisation as a keyimperativeConclusion3
1Introduction4
IntroductionBusinesses not just in India but across the globe are undergoing rapid transformation and adopting new technology-driven ways of working. Though technology intervention helpsstreamline processes and customer service delivery, it also expands the security threat landscape, necessitating a shift in cyber security priorities. As a result, organisations are looking toenhance their capabilities in order to successfully navigate the changing threat landscape and evolving priorities and ensure protection of their data and continuance of business.Hence, to assess this evolving landscape, we conducted a survey and analysed responses from more than 100 Indian organisations on the changing cyber security priorities in some keyfocus areas. This report presents an analysis of the responses, together with our point of view on the same.We looked at the priorities of stakeholders (CIOs, CISOs, technology heads, among others), along with what drives the need to have effective cyber security mechanisms across differentsectors. Our survey covered organisations across the following sectors: banking, financial services and insurance (BFSI); government and public sector (G&PS); consumer industrialproducts and services (CIPS, i.e. automotive, pharma, chemical, industrial manufacturing); technology, media and telecom (TMT); hospitality; leisure; transportation; logistics; infrastructure;and capital projects.Domains of the studyEnabling the future of businessGauges the point of view on the future ofbusiness of the survey respondents’industry/organisation.Threat landscapeSeeks to understand how the security threatlandscape is changingfor the survey respondents’industry/organisation.PwC DSCI The future ahead: Evolving cyber security priorities in IndiaCyber security prioritiesIdentifies the priorities for the surveyrespondents’ organisations with respect tosecurity initiatives and plans for enhancingthe security posture.Security optimisationSeeks to understand how executives aretrying to optimise cyber securityinvestments in their organisation.5
Demographics of survey participantsOrganisations of varying sizes and from across various sectors participated in the survey. Participant demographicsare shown below.Question: What is your organisation’s primaryindustry sector?*Sector-wise breakup of participants24%26%23%Question: What is the average IT budget of yourorganisation as a percentage of the revenue?*Question: What is the cyber security budget of yourorganisation as a percentage of the IT budget?*Average IT budget as a percent of annualturnoverCyber security budget as a percentage of 6%4%19%9%6%Others 5%5% -7%8% -10%11%-15%19% 15% 5%5% -7%8% -10%11%-15% 15%*Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India6
Question: What is the annual turnover of your organisation?*Question: What is the overall employee strength of your organisation?*Annual turnoverEmployee strength34%26%21%20%13%17%16%13%11%10%8%6%6% 250Not applicable INR 100 croreINR 101-500croreINR 501-5,000croreINR 5,00110,000 croreINR 10,00150,000 crore251-500501-5,0005,001-25,00025,001-1,00,000 1,00,000 INR 50,000crore*Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India7
2Future of business and the evolving threat landscape8
Organisations are transforming their ways of workingAs India emerges from the ongoing impact of the pandemic, businesses, consumers and communities are changing their ways of working faster than ever before to address the profoundchallenges that they face, making the most of the tremendous opportunities ahead of them.In our survey, we asked executives to respond to the following parameters surrounding the future of business:0102Digital transformationNearly 49% of the respondents stronglyagree to the fact that digital transformationwill play a key role going forward.Business resilienceOver 43% of the executives strongly agreethat investing in building or enhancingbusiness resilience.Question: From the parameters below, please choose those which arepriorities for the future of your business.Business priorities for the future60.00%51.35%03Cloud adoptionAround 38% of theexecutives strongly agreethat cloud will play a majorrole in the future ofbusiness.04Supply chaintransformationOver 12% of the executivesstrongly foresee a shift inthe focus of procurementtowards local suppliers.05Optimisation ofresourcesEfficient performance withoptimised allocation ofresources is one of the toppriorities for nearly 41% ofthe executives.50.00% ess resilienceStrongly agreeAgree0%0%Optimisation ofresourcesCan't sayDisagree6.75%0%1.35%Cloud adoption1.35%Supply chaintransformationStrongly disagreeSource: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India9
Cyberattacks, which were already on the rise, are increasingexponentially and becoming more targetedCyberattacks are not only increasing in number There has been a rise in cyber incidents following the COVID-19 outbreak. In the past few months, the number of cyberattacks on Indian organisations has increased significantly.The ongoing crisis has given malicious actors a favourable opportunity to launch cyberattacks as countries worldwide are busy handling the pandemic.Question: What are the top types of cyberattacks thatyour industry/organisation is facing?Top cyberthreats faced by Indian e25%Social engineering10.41%Ransomware9.89%Distributed denial of service (DDoS)8.33%Data exfiltration5.20%SQL injection4.16%Zero-day exploit4.16%URL poisoningMan-in-the-middle attack2.08%0.52%Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India10
Number of cyber security incidents11,58,2083xincrease in cyber security incidentsin 2020 as compared to Source: CERT-In201820192020Note: The figures reflect the number of cyber security incidents inIndia from the year 2015 to the year 2020. but also becoming more and more targeted. There is a surge in cyber security attacks as well as a shift towards more targeted cyberattacks on businesses. Some of the types of pandemic-themed cyberattacks include COVID-19 themed phishing attacks, ransomware attacks andsharing of infected emails containing COVID-19 themed documents. Phishing, malware and social engineering are the top cyberattacks targeted at organisations.PwC DSCI The future ahead: Evolving cyber security priorities in India11
Today, cyber security touches every part of the business, driving theneed to re-calibrate cyber security prioritiesBusiness leaders already had numerous concerns about cyberattacks BoardroomDo we have theinformation we needto oversee cyberrisks?CEOAre we compliant withthe applicable lawsand regulations?COOHow do we establish aculture of sharedcyber responsibilityacross the business?CRODo we approach cybersecurity using a riskbased approach?CIO/CISOAre we takingappropriate steps toprotect ourorganisation againstcyber risks?CPOAre we followingapplicable privacylaws and regulations? and the pandemic and rising number of cyberattacks have further aggravated these concerns.Are we still secure inthis remote workingscenario?Are we resilientenough for acyberattack?Have we secured oursupply chain, and arewe prepared for adisruption in it?Do we understand therisks emerging out ofincreasing digitisationand cyberattacks?Owing to the changingcyber risk landscape,do we need to relookat our cyber securitypriorities?Are we collectingmore data thanrequired orunnecessary data?Hence, recalibration of cyber security priorities can help businesses sustain in the long run.PwC DSCI The future ahead: Evolving cyber security priorities in India12
3Changing cyber security priorities13
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computingBusinesses are looking to re-prioritise their cybersecurity focus areasStrategising cyber prioritiesQuestion: Rank the areas below in order of priority for your organisation (1: highestpriority, 6: lowest priority).Cyber security priorities of Indian organisationsOur survey reveals that ‘improving threat management capabilities’ is thetop priority for Indian businesses, with 67.86% of the executives listing it asone of their top three priorities.It is followed by ‘advancing identity and access management (IAM)solutions’ and ‘securing the work-from-anywhere environment’, which58.92% and 53.56% of the survey respondents, respectively, ranked asone of their top three priorities.Improving threat management capabilities21.43%28.57%17.86%Top three priorities: 67.86% of the executives19.64%We asked our survey respondents to rank the focus areas below in order ofpriority: advancing IAM solutions securing the work-from-anywhere 64%8.93%17.86%19.64% optimising/enhancing the cyber security function.12.50%8.93%8.93%16.07%19.64%Securing cloud computing technologies19.64%21.43%Top three priorities: 28.57% of the executives23.21%12.50%21.43%17.86%Top three priorities: 42.86% of the executives7.14%16.07%Proactive monitoring through user behaviour analytics proactive monitoring through user behaviour analytics securing cloud computing technologies5.36%Securing the work-from-anywhere environmentTop three priorities: 53.56% of the executives5.36%12.50%Advancing IAM solutionsTop three priorities: 58.92% of the executives improving threat management capabilities14.29%30.36%Optimising/enhancing the cyber security function16.07%25%10.71%16.07%Top 3 priorities: 48.21% of the executivesPriority 1Priority 2Priority 3Priority 4Priority 5Priority 6Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India14
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computing01: Improving threatmanagement capabilitiesThreat management with risk-based vulnerability prioritisation iscurrently the topmost priority of Indian executivesQuestion: Rank the areas below in order of priority for yourorganisation (1: highest priority, 6: lowest priority).68%say improving their organisation’s threatmanagement capabilities is theirtopmost priorityOrganisational priorities are shifting, with a focus on getting a complete view of the risklandscape and proactively responding to emerging threats.Of the 68% of the executives who selected ‘improving threat management capabilities’ as oneof their top three cyber security priorities, 50% have chosen ‘risk-based vulnerabilityprioritisation’ as a measure to do so. Further, many executives are moving towards automation,with over 21% selecting ‘automated intelligent remediation’ and over 13% selecting ‘automatedorchestration for remediation’.Source: DSCI-PwC surveyNote: This figure indicates the percentage of executives, rounded to the nearest whole number, whoselected ‘improving threat management capabilities’ as one of their top three priorities.PwC DSCI The future ahead: Evolving cyber security priorities in India15
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computingWe asked survey respondents to rank the following measures to address threat management requirements in order of priority: automated intelligent remediation using machine learning to reduce remediation time and eliminate human errors remediation of security vulnerabilities through automated orchestration risk-based vulnerability prioritisation to reduce risk across the ecosystem by focusing on remediation efforts based on threats and available data a single, unified view of risks across the entire cyber security landscape.Note: The figures below reflect the views of the executives (68%) who chose ‘improving threat management capabilities’ as one of their top three cybersecurity priorities.Question: Please rank the following measures for efficient threat management in order of priority for yourorganisation (1: highest priority, 4: lowest priority).Measures for efficient threat managementRisk-based vulnerability prioritisation50%28.94%15.78%5.26%Automated intelligent remediation21.05%10.53%47.36%21.05%Unified view of risks across the landscape15.79%44.73%5.26%34.21%Automated orchestration for remediation13.16%15.79%31.57%Priority 1Priority 239.47%Priority 3Priority 4Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India16
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computing02: Advancing IAMsolutionsOrganisations are actively looking to enhance IAM solutionsQuestion: Rank the areas below in order of priority for yourorganisation (1: highest priority, 6: lowest priority).Organisations aim to governing complex ecosystems from anywhere and at any time:59%say they are prioritisingthe advancement of IAM solutions The industry has begun to recognise the importance of existing IAM solutions. Of the executives (59%)who selected advancing IAM as one of their top three cyber security priorities, over 42% have prioritisedenhancement of these solutions. Businesses are focusing on agile solutions for IAM-specific necessities and implementing various turnkeysolutions, with over 39% and over 18% of the executives prioritising these measures respectively.Source: DSCI-PwC surveyNote: This figure indicates the percentage of executives, rounded to the nearest whole number, whoselected ‘advancing IAM solutions’ as one of their top three priorities.PwC DSCI The future ahead: Evolving cyber security priorities in India17
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computingWe asked survey respondents to rank the following measures for addressing IAM requirements in order of priority: enhancing existing IAM solutions and focusing on increased control and security implementing agile IAM solutions to ensure flexibility and scalability implementing turnkey solutions for effective identity governance and access management implementing advanced predictive analytics to understand risk and user behaviour.Note: The figures below reflect the view of the executives (59%) who selected advancing IAM as one of their top three cyber security priorities.Question: Please rank the following IAM measures in order of priority for your organisation (1: highestpriority, 4: lowest priority).Measures for advancing IAM solutionsEnhancing existing IAM solutions42.42%21.21%12.12%24.25%Implementing agile solutions to augment and integrate the identity management programme39.39%30.30%18.18%12.13%Implementing turnkey solutions for efficient identity governance and access management18.18%9.09%45.45%27.28%Implementing advanced predictive analytics for effective governance0%Source: DSCI-PwC survey39.39%24.24%Priority 1PwC DSCI The future ahead: Evolving cyber security priorities in IndiaPriority 2Priority 336.37%Priority 418
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computing03: Securing the work-fromanywhere environmentOrganisations are stepping up to the challenge of securingremote working, with an emphasis on creating a strongersecurity culture through awarenessQuestion: Rank the areas below in order of priority for yourorganisation (1: highest priority, 6: lowest priority).54%are prioritising securing the workfrom-anywhere environmentThe number of employees working remotely has increased significantly. As per our survey, 54% of theexecutives expect over 50% of the workforce to work remotely in the near future. Additionally, nearly 14% ofthe executives indicate that the percentage of the remote workforce could go as high as 80%.To secure these perimeter-less networks, of the executives (54%) who selected securing work-fromanywhere as one of their top three cyber security priorities, over 40% have prioritised promoting cybersecurity awareness and culture, and over 26% are focusing on data security.Source: DSCI-PwC surveyNote: This figure provides the percentage of executives, rounded to the nearest whole number, whoselected ‘securing the work-from-anywhere environment’ as one of their top three priorities.PwC DSCI The future ahead: Evolving cyber security priorities in India19
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computingWe asked survey respondents to rank the following measures for securing the work-from-anywhere environment in order of priority: cyber security awareness and culture for employees and associated partners data security to protect data from unauthorised sources endpoint security to protect employee end-user devices such as laptops implementation of zero-trust architecture by treating all users as potential cyberthreat sources strategic threat intelligence and analysis to drive high-level cyber security planning.Note: The figures below reflect the views of the executives (54%) who selected securing work-from-anywhere as one of their top three cyber security priorities.Question: Please rank the following measures for securing the work-from-anywhere environment in order ofpriority for your organisation (1: highest priority, 5: lowest priority).Measures for securing the work-from-anywhere environmentCyber security awareness and culture40%13.33%16.67%16.67%13.33%Data security26.67%23.33%33.33%13.33%3.34%Securing endpoints13.33%40%26.67%16.67%3.33%Strategic threat intelligence and analysis10%6.67%6.67%33.33%43.33%Zero trust architecture10%16.67%Source: DSCI-PwC survey16.67%Priority 120%Priority 2PwC DSCI The future ahead: Evolving cyber security priorities in IndiaPriority 336.66%Priority 4Priority 520
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computing04: Proactive monitoring throughuser behaviour analyticsOrganisations are looking to leverage advanced data analytics toproactively monitor anomalous user behaviourQuestion: Rank the areas below in order of priority for yourorganisation (1: highest priority, 6: lowest priority).43%are prioritising proactivemonitoring through user behaviouranalyticsOf the 43% executives who chose monitoring through user behaviour analytics as one of their top threecyber security priorities, over 62% have prioritised advanced data and behaviour analytics to help detectanomalous user behaviour.While the above is an obvious preference for most executives, for 12.5% of the respondents, implementationof artificial intelligence (AI) and machine learning (ML) to prioritise threats, advancement of the incidentresponse mechanism and continuous threat detection are each a bigger focus area.Source: DSCI-PwC surveyNote: This figure provides the percentage of executives, rounded to the nearest whole number, whoselected ‘proactive monitoring through user behaviour analytics’ as one of their top three priorities.PwC DSCI The future ahead: Evolving cyber security priorities in India21
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computingWe asked survey respondents to rank the following measures for proactive monitoring through user behaviour analytics requirements in order of priority: advanced data and behavioural analytics to detect anomalous user behaviour, contextualising alerts in relation to users, devices and events use of AI and ML to filter billions of actions on a network and list down prioritised cyberthreats intelligent incident response mechanism, reviewing incidents by prioritising anomalous entities and tracing associated activities and events, to accelerate securityinvestigations programmed and continuous threat detection for effective and quick remediation.Note: The figures below reflect the views of the executives (43%) who chose monitoring through user behaviour analytics as one of their top three cybersecurity priorities.Question: Please rank the following measures for proactively leveraging user behaviour or analytics inorder of priority for your organisation (1: highest priority, 4: lowest priority).Measures for proactive monitoring through user behaviour analyticsAdvanced data and behaviour analytics to detect anomalous user behaviour62.5%8.33%16.67%12.5%Implementation of AI and ML to prioritise threats12.5%29.16%29.17%29.17%Intelligent incident response mechanism to rapidly investigate incidents12.5%41.66%16.67%29.17%Programmed and continuous threat detection12.5%Source: DSCI-PwC survey20.83%37.5%Priority 1PwC DSCI The future ahead: Evolving cyber security priorities in IndiaPriority 2Priority 329.17%Priority 422
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computing05: Securing cloud computingtechnologiesOrganisations are considering enhancing the security maturityof their cloud environmentQuestion: Rank the areas below in order of priority for yourorganisation (1: highest priority, 6: lowest priority).29%are prioritising securing of cloudcomputing technologiesBusinesses are seeking efficiency, reduced overheads and commercially viable solutions that guaranteecyber security.Of the executives (29%) who chose securing cloud computing technologies as one of their top threecyber security priorities, nearly 43% are working towards enhancing the security maturity of their existingcloud environment, while over 28% are trying to accelerate secure cloud adoption.Source: DSCI-PwC surveyNote: This figure indicates the percentage of executives, rounded to the nearest whole number, whoselected ’securing cloud computing technologies’ as one of their top three priorities.PwC DSCI The future ahead: Evolving cyber security priorities in India23
Threat managementIdentity and access managementWork from anywhereUser behaviourSecuring cloud computingWe asked survey respondents to rank the following measures to secure cloud computing technologies in order of priority: enhancing the security maturity of existing cloud environments accelerating secure cloud adoption complying with relevant laws and sector-specific requirements securing cloud operations through monitoring and detection capabilities.Note: The figures below reflect the views of the executives (29%) who chose ‘securing cloud computing technologies’ as one of their top three cybersecurity priorities.Question: Please rank the following measures for securing the cloud ecosystem in order of priority foryour organisation (1: highest priority, 5: lowest priority).Measures for securing cloud computing technologiesEnhancing the security maturity of the existing cloud environment42.85%21.42%21.42%14.28%Accelerating secure cloud adoption28.57%21.42%14.28%35.71%Achieving and maintaining compliance with regional and sector-specific requirements21.42%28.57%21.42%28.57%Securing cloud operations through monitoring and detection capabilities7.10%28.57%42.85%Priority 1Priority 2Priority 321.42%Priority 4Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India24
4Dichotomy between enhanced security and optimisation25
Though cyber security budgets are increasing, decision makers still facebusiness pressure to optimise the cyber functionAs cyber security priorities evolve, a dichotomy has emerged between enhancing thesecurity capabilities of an organisation and optimising available resources.Organisations are facing ever-increasing cyber risks and need to prioritise the enhancementof their security capabilities. At the same time, due to financial pressure, cyber securitybudgets are not increasing at the same pace as requirements. Hence, cyber spending maynot be aligned with the most significant risks.On one hand, 72% of the executives predict that the YoY cyber security budgets willincrease by over 5%. On the other, for over 48%, optimising/enhancing the cyber securityfunction is among their top three cyber security priorities.This has given rise to a dichotomy between enhancing cyber security capabilities on the onehand and optimising the available resources on the other.Businesses face a dichotomy betweenQuestion: What is your foresight on the cyber security budget (year-on-year)in the upcoming 3 years for your organisation?72%Source: DSCI-PwC surveyQuestion: Rank the areas below in order of priority for your organisation(1: highest priority, 6: lowest priority).enhancing cyber security capabilitiesoptimising cyber security resourcespredict that their YoY cyber securitybudget will increase by over 5% in thenext three years48%say that optimising/enhancing the cybersecurity function is one of their top threecyber security prioritiesSource: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India26
5Optimisation as a key imperative27
AutomationTechnology optimisation/enhancementOptimising security operationsOrganisations are working on three key levers tooptimise cyber security spendsThe DSCI-PwC survey asked executives to share their views on the three key dimensions of their cyber security functions.We asked survey respondents to rank the following measures to optimise/enhancecyber security cost in order of priority: automation in cyber security technology optimisation/enhancement optimisation of security operations.AutomationLeveraging automation as the foundation formanaging security processes will help inoptimising the effort and resources required forhandling cyber security.PwC DSCI The future ahead: Evolving cyber security priorities in ses can optimise their security landscapethrough technology consolidation and leverage anopen-source technology stack to reduce costs.Optimisation of securityoperations03Security operations can be optimised throughmanaged security services, cloud-based servicedelivery and transaction-based pricing models.28
AutomationTechnology optimisation/enhancementOptimising security operationsQuestion: Please rank the following measures for cyber security cost optimisation/enhancement in order ofpriority for your organisation (1: highest priority, 4: lowest priority).Measures to optimise/enhance cyber security costAutomation in cyber security48%20%32%Technology optimisation/enhancement35%35%30%Optimisation of security operations17%44%Priority 139%Priority 2Priority 3Source: DSCI-PwC surveyPwC DSCI The future ahead: Evolving cyber security priorities in India29
Automation01Technology optimisation/enhancementOptimising security operationsLeveraging automation for routine tasksFor 31% of the executives, automating threat detection and response capabilities is the number one priority, while the corresponding figure for automation in deployment leveragingcontinuous integration (CI) and continuous delivery (CD) is 35%. Similarly, for 31% of the executives, the first priority is automating security monitoring tools.Nearly 92% of the executives are also looking at automating the security vulnerability management lifecycle and 92% are considering orchestration/automation, including DevSecOps/SOARin the next 12 months.These automation requirements stem from the fact that businesses are looking to automate repetitive functions, streamline workflows and orchestrate security tasks due tostaff shortage and cost pressures.Question: In your view, roughly what percentage of your manual work can be reduced through automation?70%say that over 10% of manual work can bereduced through automationSource: DSCI-PwC surveyNote: The figures in the graphs above reflect the views of the executives (48%) who chose automation in cyber security as the first priorityfor cyber security cost optimisation/enhancement.PwC DSCI
Partner and Leader, Cyber Security, PwC India Sivarama Krishnan Partner and Leader, APAC Cyber and India Risk Consulting, PwC Based on our study, this paper highlights the key trends for the future of business, the evolving cyber security priorities a nd the various ways of optimising the cyber security function. In
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