For today’s organizations, data breaches are no longer an improbable ‘what-if,’ but a plausible ‘when.’ Cyber criminals are as tenacious and viral as the common cold, incessantly attacking those with the weakest defenses. The World Economic Forum validated this reality in a recent report by ranking cyber attacks and data breaches in the top five most serious global threats. The battle against cyber breaches is on.Yet, how do organizations combat such inexorable and maleficent threats? Well, as too with the common cold, the best defense is a good offense – prevention. Ultimately, preventing breaches is the most cost-effective, damage-free approach. But no prevention schemes are truly impregnable. Hackers thrive on proving that point. When criminals do get the better of a company’s blockades, it must be prepared to mitigate the costs of the breach: downtime, compromised data, loss of market share, customer exodus, reputation damage, etc.
- A breach of 1 million records yields an average total cost of $40 million1
- A breach of 50 million records yields an average total cost of $350 million1
A robust business continuity management program (BCMP) that addresses data breaches is the remedy. And a recent study conducted by the Ponemon Institute revealed just how beneficial a BCMP is to an enterprise facing a data breach.
But before we start revealing the cost reductive benefits of a BCMP, have you ever wondered how the mysterious lump figure assigned to “the cost of a data breach” is calculated? Below are four key factors that experts use to determine data breach costs:
• The number of records compromised
• How long it takes to identify and contain a breach
• The detection and escalation of the incident
• Post-breach monetary expenditures, including costs to notify those effected
Now let’s take a look at the Ponemon Institute’s findings and how a BCMP aids positive impact on the cost of a breach. For the report, the institute harvested responses from 477 enterprises within 17 industries from 13 countries across the globe.
8 Positive Impacts of BCMP on Cyber Breach Costs
- Significantly shortens breach identification and containment time with a more calculated and structured response to the indecent.
Survey reported: On average, organizations can save 82 days of total breach management.
- Curtails the probability of another near-future breach by allowing companies to incorporate learned mistakes to future BC plans and security protocols.
Survey reported: A 32% decrease of breach probability over next two years
- Reduces total breach cost per day
Survey reported: Average of $5,703 per day can be saved
- Automated incident response or disaster recovery helps trim cost per day
Survey reported: An estimated $3,446 savings in cost-per-day
- Lowers cost per record
Survey reported: A savings of $18 cost-per-record
- Diminishes business operations disruptions with plan processes and backup strategies
Survey reported: A 22% decrease in operational disruptions
- Promotes IT operations resilience
Survey reported: An 11% boost in IT resilience
- Minimizes reputation damage in the wake of a breach by providing premediated brand safeguards and by helping to mitigate the overall breach impact.
Survey reported: Negative impact of breach on reputation is sliced by 15%.
More BCM benefits at a glance:
- $9.3 reduction in per capita cost of the breach
- 6.5% reduction in the per capita cost of the breach
- 44-day reduction in the mean time to identify the breach
- 38-day reduction in the mean time to contain the breach
- 31-day reduction in the mean time to recover from the breach
- 31.5% percentage cost per day differential between companies that involve BCM and those that do not1
Reducing the cost of a cyber breach is just one of the many ways a full-spectrum business continuity management program works to lessen risks and mitigate the effects of disruptions and disasters in any enterprise. For those yet to develop a BCMP, it may seem a daunting, resource-taxing endeavor, but the savings and rewards quickly repay the expenditures.
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Written by Angie Longacre
As a writer for Assurance Software, Angie devotes her craft to promoting business continuity and disaster recovery awareness, and trumpeting Assurance Software’s invaluable benefits for both. When she’s not commanding the keyboard, you can find her outside for a run, searching for her next antique treasure, or lost in a good book.