True Costs of a Data Breach

True Costs of a Data Breach

According to the Ponemon Institute, the average cost of a data breach in 2018 was $3.86 million, an increase of 6.4 percent from the previous year. As our world becomes more digital, the more exposed we will be to data threats. Which, in turn, will only increase the costs of a breach.

What is the cost of the data breach?

The financial cost to manage a data breach varies based on the type of breach, the extent of the damage caused by the breach and many other variables pertaining to the company and their incident. For those businesses that have already committed the resources to have a data breach plan in place, they will have less of a cost to manage it compared to an organization that wasn’t prepared to handle a breach. Companies that have a data breach plan in place can quickly communicate appropriately to the affected customers and/or partners. By doing so, brands will minimize the damage to their reputation by taking swift action and diminishing the opportunity for a backlash against the company, which will decrease sales. In addition, the thorough communications to customers and partners will enable businesses to take the initial first step of regaining the trust of customers and other organizations.

What is a data breach resolution?

It is recommended a that every company have a data breach resolution.  A data breach resolution is the process that prepares and supports companies that have experienced a data breach. Companies that receive data breach resolution services are assisted throughout the data breach response process to minimize the negative impact to the brand. From notifying the impacted customers and/or businesses, to resolving the issues, data breach resolution guides the company towards an effective response to the impacted parties. Whether it’s a hacking, skimming or phishing occurrence, data breach resolution has evolved to ensure companies are able to navigate their specific data breach case based on the type of incident that occurred.

What are the key factors to consider in developing an effective incident response plan and get C-Suite buy-in for data breach prevention?

Generally, senior leadership is in the dark about the specific security threats facing their organizations and their participation in data breach response plans is mostly reactive. However, when senior leaders are more informed, it makes a difference and is a key factor in having the data breach response program be effective.  C-suite executives and boards of directors who are knowledgeable and actively engaged in incident response plans can reduce the likelihood of a data breach. That sentiment was supported in the findings of the study, which revealed 81 percent of respondents believed increased participation and oversight from senior executives would enable to company’s data breach plan to be more effective.

Organizations that have engaged leadership invest more in IT and employee training, often have a C-suite level executive in place and apply time and resources towards preparedness such as enlisting security partners with pre-breach agreements so they are ready immediately to provide support if a breach occurs. C-suite executives understand the importance of protecting a brand’s reputation, so enlisting security partners with pre-breach agreements so they are ready immediately to provide support if a breach occurs, is a tactic that will enable the company to overcome a breach.

TCS would be happy to partner with you as your trusted security partner.  We can collaborate closely on implementing a cyber security solution that will protect your business from these evolving threats.  Contact us for more details.