Research Report Shows Devastating Anticipated Cost of Breaches
NTT Com Security, the global information security and risk management organization, has issued a new Risk:Value research report which highlights the critical need for organizations to protect their data. The report shows that 65% of business decision makers surveyed expect to suffer an information security breach – at an average cost of almost one million dollars and a recovery time of two months.
“This report makes it clearer than ever how critically important it is for organizations to implement a comprehensive solution to protect their data,” said Christopher Camejo, Director of Threat and Vulnerability Analysis, NTT Com Security. “Fortunately, business leaders are now recognizing the risk to their organizations’ revenues and reputations, and beginning to take action to protect critical and confidential data from attacks.”
Survey participants reported that they expect to suffer severe monetary and reputational consequences from an information security breach. Respondents estimate a breach would take nine weeks to recover from and would cost, on average, $907,053, – even before taking into consideration the cost of any reputational damage, brand erosion and lost business. Additionally, decision makers approximate that connected remediation costs would include legal fees, compensation to customers, third party resources and fines or compliance costs. Other expected remediation costs include PR and communications and compensation to suppliers and employees. Further, companies predict a 13% drop in revenue as a result of a breach.
According to the report, almost all respondents say they would suffer external and internal impacts if data was stolen in a security breach, including loss of customer confidence (69%) and damage to reputation (60%). One third of business decision makers also expects to resign or expects another senior colleague to resign as a result of a breach.
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 that their organization will suffer a data breach sometime in the future.
“The devastating cost of a data breach cannot be overstated, and as this report shows, many organizations simply are vulnerable,” said Camejo. “Our objective at NTT Com Security is to provide a broad range of solutions to protect data and reduce the risk of a catastrophic breach.”
The Risk:Value Executive Summary report can be downloaded from:https://www.nttcomsecurity.com/us/landingpages/risk-value-2016/
The Risk:Value U.S. infographic can be downloaded from:http://www.nttcomsecurity.com/uploads/documentdatabase/US_Infographic_RiskValue_Public_Approved_V1.pdf.PDF
Commissioned by NTT Com Security the research was conducted by Vanson Bourne during October and November 2015. 1,000 business decisions makers (not in IT) were surveyed in the US, UK and Germany (200 in each), and France, Sweden, Norway and Switzerland (100 in each). Organizations had more than 500 employees, but those in Norway, Sweden and Switzerland could come from organizations with at least 250 employees. There were a minimum number of responses from the financial services sector (at least 50 in UK, US, France & Germany and minimum of 30 in the other countries).
About NTT Com Security
NTT Com Security is a global information security and risk management organisation, which delivers a portfolio of managed security, business infrastructure, consulting and technology integration services through its WideAngle brand. NTT Com Security helps organizations lower their IT costs and increase the depth of IT security protection, risk management, compliance and service availability. NTT Com Security AG, is headquartered in Ismaning, Germany and part of the NTT Group, owned by NTT (Nippon Telegraph and Telephone Corporation), one of the largest telecommunications companies in the world. For more information, visit http://www.nttcomsecurity.com.