Examining the Cost of a Data Breach

Just for fun, play around with this interactive breach calculator on the IBM Security page, interactivity is a powerful educational tool.

https://databreachcalculator.mybluemix.net/

If you are not familiar with all the acronyms in the calculator:

  • BCM means business continuity management
  • DLP means data loss prevention
  • CPO means chief privacy officer

2017 Cost of a Data Breach Study
by Dr. Larry Ponemom – via sponsorship of IBM Security

  • 419 companies who had been breached are studied.
  • Average cost to resolve a breach is $156 (it’s higher than that in the US).
  • Smallest number of lost records for a survey participating company was 2,600.

Now do the math: 2600 records x $156 = $405,600

And yet when JP Morgan Chase studied 597,000 small businesses in Autumn 2016, the average daily cash balance was $12,100

https://www.jpmorganchase.com/corporate/institute/report-cash-flows-balances-and-buffer-days.htm

Is it any wonder then, that we repeatedly read or hear so many small businesses don’t survive a data breach?

Ponemon noted in his 2016 Global Cost of a Data Breach study, that there are a number of proactive means to reduce costs of a breach:

Improvements in data governance initiatives will reduce the cost of data breach. Incident response plans, the appointment of a CISO, employee training and awareness programs and a business continuity management strategy result in cost savings.

https://securityintelligence.com/cost-of-a-data-breach-2016/

And please: Be careful out there, Because #RiskcanRuin!!!

 

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