5 Costs of a Cyber Breach Every Organization Could Experience
As cyber breaches become more common, they’ve also gotten more costly; and there is no sign the attackers are slowing down. The victims of these attacks represent all types of businesses, large and small, as well as local, state, and federal government entities. Although the actual costs that result from a cyber breach are dependent upon a variety of factors, according to an article published this spring by Business Insider, “the average cost of a data breach is now over $7 million”.
Some of the costs that nearly every organization will incur due to a cyber breach include:
Loss of Sensitive Data
In most cyber attacks there is some type of sensitive data lost. This may include financial records, personal identification information, confidential records, and other items like these that can inflict long term, costly, and potentially irreparable damage should they fall into the wrong hands. In addition, there are usually direct monetary costs that can include a ransom, as well as the time required to locate and retrieve the stolen data.
Decrease in Consumer Trust and Loyalty
Regardless of the type of business or government office that’s breached, consumers lose confidence in the organization at least for a period of time. The more frequently the company is breached, the more trust and customer loyalty is lost.
Drop in Stock Prices
It’s been noted, particularly with high profile companies, that once a cyber attack occurs, stock prices drop. Some do recover, while others take a permanent hit.
Lost Work Hours
Costs associated with a cyber security breach also include the time lost while employees work on addressing the breach instead of innovation, management, and essential, day to day tasks. Each day that passes increases the cost of lost work hours.
Charges for Response and Remediation
Whether your internal cybersecurity team is working overtime to address the cyber breach or you work with an external agency, there will be direct charges for the cyber response and remediation required to get the organization back on track after a cyber breach.
Generally organizations will find it’s prudent to review their cyber security strategy at this point as well, which leads to additional costs for improving the company’s protection, as well as its response and resiliency should another breach occur.
There are other costs associated with a cyber breach as well that are dependent on the niche the organization occupies, the nature of the breach itself, as well as the business or government’s level of cyber preparedness and resiliency. To get a better understanding of the way a cyber security breach could affect your organization or discuss ways in which your business or government office can improve its cyber security please contact Innové Strategy Vice President Brandon Neff at firstname.lastname@example.org.