The costs associated with security breaches are going up, jumping 29 percent since 2013 to more than $4 million per incident in 2016, according to Ponemon’s annual benchmarking report. In addition, when it comes to the impacts of breaches – such as cost per record lost – Ponemon says the gap is widening between organizations that are unprepared and those that have added policies and processes like incident response plans, encryption and employee training.
To calculate the average cost of a data breach, Ponemon collects both the direct and indirect expenses as well as opportunity costs incurred by the organization as follows:
Direct cost: the direct expense outlay to accomplish a given activity, such as engaging forensic
experts, outsourcing hotline support and providing free credit monitoring subscriptions and
discounts for future products and services.
Indirect cost: the amount of time, effort and other organizational resources spent in the
aftermath of a breach, such as in-house investigations and communications. This category also
includes the extrapolated value of customer loss resulting from turnover.
Opportunity cost: the cost of lost business opportunities resulting from negative reputation
effects after the breach has been reported to victims and publicly revealed to the media.
Cyber attacks affect all businesses- even smaller ones. What would the impact be on your business should you be breached or struck with ransomware?
Maybe it’s time to have a security assessment done by professionals that can show you not only where your weaknesses might be, but can also show you cost effective ways to mitigate the risks of costly breaches and attacks today and in the future.
Reach out to a trusted technology advisor today to have a conversation. If you don’t have a technology advisor, we are ready to help you.