Cybersecurity and data breaches remain to make headlines as businesses and associations around the world fall victim to system interruption and data theft. Still, some organizations are still reluctant to just start spending thousands of dollars improving their security systems and updating data protection policies and practices. It isn’t unusual to hear someone asking, “Are investments into cybersecurity worth it compared to the cost of a data breach?”
The cost to protect
Companies and organizations are reluctant to publicly declare their cybersecurity spending practices. To add to the challenges of tracking down the average investment in data protection, organizations have a mixture of different needs when it comes to cybersecurity since a health care provider might require tighter security than a restaurant. However, the information security market is flourishing. According to Gartner, worldwide, organizations spent $81.6 billion in 2016 on information security, an increase of 7.9 percent from 2015.
The cost of a breach
There is no getting around the large financial results of a data breach. According to the Ponemon Institute’s 2016 Cost of Data Breach Study, the average total cost of losing delicate corporate or personal data is approximately $4 billion. Per stolen record, businesses and associations can contribute anywhere between $145 and $158, with health card information costing the most to fall, at $355 per record.
The majority of data breach costs are connected with resolving the matter, as organizations must give compliance penalties and court fees, invest in forensic and investigation processes, and give revenue on identity theft prevention services for customers or employees. Additionally, Ponemon’s report recorded that the turnover of consumers directly affects business costs, and from then on out, these businesses must spend more on customer purchase as the reputational damages of a data breach remain a long time.
When Ponemon’s data is matched with the Identity Theft Resource Center’s statistics, it would seem that businesses and organizations are spending too much on security that isn’t working. With the average cost of a personal record coming in at $150 and 117,678,050 records obtained as of July 7 – according to ITRC – organizations have dropped $17.65 billion six full months into 2015.
What is the solution?
Every organization requires a use case for cybersecurity solutions, otherwise, the investment is executed into a tool that doesn’t operate. With various monitoring software, physical firewalls, and cutting-edge cybersecurity offerings, companies and organizations aren’t successful at the only thing that values: data protection.
There’s a lot at stake when you conduct a risk assessment, so it’s a good idea to take expert advice. That’s where TestUnity comes in. Connect with our experts to know more about risk assessment.