How likely are you to suffer an unwanted intrusion within your IT systems? The majority of business decision makers admit their organization will suffer an information security breach, and that the cost of recovery could start from around $1 million. This is according to a new report by NTT Com Security.
The Risk:Value Report 2016 noted that 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 their organisation will suffer a data breach at some point in the future. Perhaps the latter is not surprising given that only around one in five (22%) respondents claimed that all of their organization’s data is completely secure.
From this it is clear to see why cyber attacks and data breaches rank as the top two threats to organizations, as highlighted in the Business Continuity Institute's latest Horizon Scan Report. The vast majority of respondents to a global survey (85% and 80% respectively) expressed concern about the prospect of these threats materialising.
Respondents to the Risk:Value survey estimated that, on average, a breach would take nine weeks to recover from, and would cost $907,053. This is before any cost of reputational damage, brand erosion and lost business are taken into consideration. Decision makers estimate that around a fifth (19%) of their company’s remediation costs would be spent on legal fees, 18% on compensation to customers, 15% on third party resources and 15% on fines or compliance costs. Other expected remediation costs include PR and communications and compensation to suppliers and employees.
Garry Sidaway, SVP Security Strategy and Alliances at NTT Com Security, commented: “Attitudes to the real impact of security breaches have started to change, and this is no surprise given the year we have just had. We’ve seen household brands reeling from the effects of major data breaches, and struggling to manage the potential damage to their customers’ data – and the cost to their reputation.”