Published on 15 February, 2016
|The report shows that 65% of business decision makers surveyed expect to suffer an information security breach
NTT Com Security, the global information security and risk management organisation, has issued a new Risk: Value research report which highlights the critical need for organisations to protect their data. The report shows that 65% of business decision makers surveyed expect to suffer an information security breach – at an average cost of almost one million dollars and a recovery time of two months.
Risk of data breach
“This report makes it clearer than ever how critically important it is for organisations to implement a comprehensive solution to protect their data,” said Christopher Camejo, Director of Threat and Vulnerability Analysis, NTT Com Security. “Fortunately, business leaders are now recognising the risk to their organisations’ revenues and reputations, and beginning to take action to protect critical and confidential data from attacks.”
Survey participants reported that they expect to suffer severe monetary and reputational consequences from an information security breach. Respondents estimate a breach would take nine weeks to recover from and would cost, on average, $907,053, – even before taking into consideration the cost of any reputational damage, brand erosion and lost business. Additionally, decision makers approximate that connected remediation costs would include legal fees, compensation to customers, third party resources and fines or compliance costs. Other expected remediation costs include PR and communications and compensation to suppliers and employees. Further, companies predict a 13% drop in revenue as a result of a breach.
Impact of stolen data for organisations
According to the report, almost all respondents say they would suffer external and internal impacts if data was stolen in a security breach, including loss of customer confidence (69%) and damage to reputation (60%). One third of business decision makers also expects to resign or expects another senior colleague to resign as a result of a breach.
While 54% of those surveyed say information security is ‘vital’ to their business and nearly a fifth (18%) agree that poor information security is the ‘single greatest risk’, two-thirds (65%) predict that their organisation will suffer a data breach sometime in the future.
“The devastating cost of a data breach cannot be overstated, and as this report shows, many organisations simply are vulnerable,” said Camejo. “Our objective at NTT Com Security is to provide a broad range of solutions to protect data and reduce the risk of a catastrophic breach.”