Management / Two thirds of business bosses expect to be hit by cyber breaches
Two thirds of business bosses expect to be hit by cyber breaches
11 February 2016 |
Two thirds of businesses believe they could be hit by cyber breaches, with recovery costs starting at around $1 million (£692,000), according to a report.
Research by NTT Com Security showed that 65 per cent of decision makers think their companies will suffer a data breach at some point in future.
Respondents estimated that a breach would take nine weeks to recover from with an average cost of $907,053 (£628,222) – before taking into account brand and reputational damage.
They said 19 per cent of this was for legal fees, 18 per cent for customer compensation, 15 per cent for third-party resources and 15 per cent for fines and compliance costs.
As such, 54 per cent said they believe information security is “vital” to their businesses, while 18 per cent called it the “single greatest risk” their organisations face.
“Attitudes to the real impact of security breaches have started to change, and this is no surprise given the year we have just had,” said NTT Com Security’s senior vice president for security strategy and alliances, Garry Sidaway.
“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.
“While the majority of people we spoke to expect to suffer a breach at some point in the future, most also expect to pay for it – whether that’s in term of remediation costs, customer confidence or possibly even their jobs.”
The survey revealed that on average just 10 per cent of firms’ IT budgets are spent on security, despite an anticipated 13 per cent drop in revenue following a breach.
And only 41 per cent of organisations have insurance to cover the financial impact of data loss and a security breach, while 12 per cent are not covered for either.
Meanwhile, 22 per cent believe all of their firms’ data is completely secure.
The research follows another report earlier this week that showed that cyber attacks have remained the top risk to businesses for the second year in a row.
For more on the report, see the NTT Com Security website.