The Cost of a Data Breach

Safeguarding your company against possible data breach is becoming a rapidly growing issue. In 2019, an average data breach would amount $3.92 million. This study was from the “Cost of a Data Breach Report” done by Ponemon Institute in partnership with IBM Security. As protection becomes very vital in cybersecurity, the chances of experiencing a data breach also continues to rise.

What are the considerations when thinking of a possible data breach?

• Direct costs

  • The amount of time used in handling the breach. This covers the examination and forensic operations, the process of identification, and the assessment of the damages and penalties.

• Indirect costs

  • This refers to the time, labor, and other means to cover the damages from data breach. Indirect costs also refer to the expenses for communications about the conditions and consequences of the breach.

• Lost opportunity costs

  • A breach will lead to wasted business possibilities. As a result of the consequences of the data breach, it will tarnish the reputation, eventually losing clients.

Data breach cost estimate is affected by each action being done in your company. Likewise, the location has an impact to the cost. The standard estimated cost this year is $150 million having a yearly cost prediction of $2.1 trillion globally. It was assessed that in six months of 2018, more or less 4.5 billion records were uncovered as an outcome of data breaches. 

How can you estimate the data breach cost?

The primary cost shaping considerations are the location of your business, the data stolen, and the volume of the breach, the effect of it in media and on your company’s standing. Of course, there are other elements because one cannot be truly precise because each breach is managed differently. However, at least, it gives you the basic knowledge of the cost elements.

So, How to Reduce Monetary Effects of a Data Breach?

• PLAN AND TEST

The success of your incident response relies on developing a concrete plan and testing it. If there is something that does not work, modify your plan. Remember that whatever your scheme is, it has to be executed well by your staff. You have to be a team that has communication, leadership, and capability to make decisions even during trying times.

• QUICKLY DETECT AND CONTAIN A DATA BREACH

Automating your response means technologies like enterprise detection and response tools that can help the detection. In 2019, the average cost of a data breach is roughly around $2.65 million. As per the Cost of a Data Breach Report, automating the process, through various tools, help reduce the cost of a data breach up to 50%!

• KNOW THE POTENTIAL DANGERS

In 2019, 51% of breaches were done by cybercriminals with malicious intent. When you assess what motivates these people, you get to understand the risks. Study the attempted attacks and know the intentions of the cyber attackers. Then, you can formulate a more efficient online security.

• WHEN NOTHING WORKS, CALL THE EXPERTS

For your cybersecurity needs, you can contact Omnipotech at 281-768-4800. Whether you need in mitigating the effects of a data breach or you want develop a stronger security, get in touch with us through the Omnipotech Support Center.